Coming from TIME magazine…
Microsoft notes that Minecraft‘s 720p docked/undocked resolution isn’t a question of system power, but stems from issues currently experienced shifting from one resolution to the other when docking/undocking. It’s possible, albeit not confirmed, that Minecraft for Switch could hit 1080p docked down the road.
Looks like there’s a kink or two to try and work out, and that could result in the resolution in docked mode getting bumped up a bit. It’s not a guarantee, but at least Microsoft was forthcoming about the matter.
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