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Pre-release Dev Kits for the Switch had real Game Card Readers.DLSS takes some amount of time to run, and the longer it takes to run the less viable it is at higher framerates. In an extreme example, if DLSS took 20ms to output a 4K image on T239, then it simply wouldn't be possible to run any game at 4K 60fps using DLSS on the hardware, even if there are some games which could run at 4K 60fps natively. I don't think DLSS will literally take longer than a full frame to run, but it's entirely possible that a 4K DLSS pass would eat into the frame time so much that it isn't really viable at 60fps, and devs will more likely drop down to ~1440p DLSS output resolution in 60fps games to free up resources.
Fair point on the game card slot being required for testing, but I would expect that in pre-release devkits like this it wouldn't necessarily have any relationship to the size and shape of a real game card reader, and it would more likely be some kind of breakout board with the necessary prototype hardware on it. Of course this may be the case, and they're just misinterpreting it as representative of the final game card design.
DLSS' frame time probably isn't extremely severe, especially since we see 4K60DLSS running in tests in the Nvidia leak, but some games might be demanding to the point that their frame time PLUS DLSS' makes DLSS at 60FPS impossible. I don't think it's likely to be an issue for EVERY game, however, and DLSS in some other games may reduce frame time overall by reducing render resolution.