Here is an overview of the update, via Nintendo:

Ver. 20.0.0 (Released April 29, 2025)

• The following icons for new features have been added to the HOME Menu:
  • Vitrual Game Card
    • Purchased Nintendo Switch digital software, downloadable content, and some free software, are now virtual game cards and displayed in a list in this menu.
    • You can virtually load and eject virtual game cards between up to two Nintendo Switch systems.
    • Virtual game cards can be lent to others in the same Nintendo Account family group. For more information, see Virtual Game Card Guide.
  • GameShare
    • Compatible software can be shared from a Nintendo Switch 2 system to other nearby system(s) to play together.
      • You can only play together via local wireless, and the Nintendo Switch 2 system must initiate GameShare.
      • This feature cannot be used between two Nintendo Switch, Nintendo Switch - OLED Model and/or Nintendo Switch Lite systems.
• User-Verification Settings has been added under User > User Settings.
  • You can restrict access to the Virtual Game Card menu by requiring entry of a PIN or signing in to your Nintendo Account.
• Online License Settings has been added.
  • When turned on, you can play downloaded software or downloadable content you've purchased while the system is connected to the internet, even if you don't have the virtual game card loaded.
  • For more information, please refer to the details about the option on the System Settings screen.
• The Nintendo eShop and Nintendo Switch News icon colors on the HOME Menu have been changed.
• Multiple save data can be selected and transferred at once in "Transfer Your Save Data" menu.
• System Transfer to Nintendo Switch 2 has been added under System Settings > System.
  • You can perform a system transfer from your Nintendo Switch to Nintendo Switch 2 using local communication.
    • For users that will lose access to their Nintendo Switch before receiving their Nintendo Switch 2, there is an option to upload system transfer data to a dedicated server which can then be retrieved on their Nintendo Switch 2. After you upload your system transfer data to the dedicated server, the Nintendo Switch system will be initialized to factory settings, so only perform this transfer if you'll be able to complete the transfer on Nintendo Switch 2.
    • If you want to continue using your Nintendo Switch until you have a Nintendo Switch 2, we recommend completing the system transfer using local communication after you have acquired a Nintendo Switch 2 system.
  • An internet connection and Nintendo Account is required to complete both local and the server-based system transfer service.
  • For more information, see System Transfer from Nintendo Switch to Nintendo Switch 2.
• The appearance of some user icons have been updated.