Short version: TV mode looks better. Handheld mode saves battery. There's more nuance than that, but that's the gist.
What Docked Mode Gets You
Pop your Switch 2 into the dock and you unlock 4K output at 60fps, or 1440p/1080p at 120fps. The console pulls about 18-19 watts and runs the GPU harder. The dock has its own cooling fan to handle the extra heat.
Many Switch 2 games have visual features that only turn on in docked mode. Ray tracing, better textures, that kind of thing. If a game can look better, it usually does when connected to a TV.
Handheld Is Still Good
The 7.9-inch 1080p 120Hz screen is genuinely nice. But to keep battery life reasonable, handheld mode throttles things back. Power consumption drops to about 10 watts. Games automatically dial down resolution and effects.
You won't get 4K or the fanciest graphics in your hands. That's the trade-off for portability.
A Neat Feature for Old Games
There's a Handheld Mode Boost option for backward-compatible Switch 1 games. Turn it on and those games run with their TV mode graphics, even in handheld. Better visuals, but it eats battery faster.
Watch Your Charger
Here's a gotcha: TV mode only activates with 60W or more from your charger. Old Switch chargers might not cut it. Lower wattage chargers still charge the console, but you're stuck in handheld mode even when docked. Consider a 60W USB-C charger if your original isn't cutting it.
Bottom Line
For the best-looking games, dock it. For convenience and portability, handheld is still impressive.
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