Nintendo announced months ago that the Switch 2 would be backwards compatible with Switch 1 titles, bar a few limited exceptions. However, it turns out Switch 1 titles aren't running natively on Switch 2 and are instead relying on emulation.
During a developer Q&A on the Switch 2, Takuhiro Dohta explained that the team implemented “something that's somewhere in between a software emulator and hardware compatibility”.
As spotted by Eurogamer, that does mean that some Switch games may not run perfectly on Switch 2 at launch. Some Switch 1 titles have already been revealed to have compatibility issues, including 141 titles with start-up issues and 47 games with in-game compatibility issues.
Some of the titles with compatibility issues aren't exactly small either. Rocket League, Warframe and Dead by Daylight are all listed amongst the titles with start-up issues. On the single-player side, Doom Eternal, Wolfenstein 2, Final Fantasy and Alien Isolation are also listed as having issues.
Other titles, like Ring Fit Adventure and Nintendo Labo won't work with Switch 2 due to peripheral incompatibilities, as the new Joy-Cons won't fit the Labo cardboard kits, or the Ring Fit Adventure Ring attachment.
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KitGuru Says: Hopefully the few games with compatibility issues currently can be updated shortly after launch to properly support Switch 2.