NVIDIA's custom Tegra processor will be packed into Nintendo Switch to power the hybrid console's graphics and performance. Tegra is an efficient system developed by NVIDIA for portable devices such smartphones and tablets and has also been used in their Shield console series.
The console's algorithms, computer architecture, system design, system software, APIs, game engines and peripherals have been redone for Nintendo to provide the best user experience, according to this blog post published by NVIDIA. It also mentions that NVIDIA additionally created new gaming APIs to fully harness the console's power. The newest API, NVN, was built specifically to bring lightweight, fast gaming to the masses. The gameplay is also said to have been improved by hardware-accelerated video playback and custom software for audio effects and rendering.
All in all, these enhancements are expected to improve the overall performance and expand the portable console's capabilities. Nintendo Switch is scheduled for release in March 2017. For more info on this newly announced console, check out the reveal trailer.