The video of the Switch UI and OS unboxing posted earlier shows the “Initialize Console” screen, which has this text on it.
“Any Nintendo Accounts linked to this console will not be deleted, but they will be unlinked.”
“Your Nintendo Account contains your Nintendo eShop purchase history and current balance. By re-linking your Nintendo Account after initializing the console, it will be possible to redownload any software or DLC purchased using that account. (Software that has been discontinued may not be available for redownload in some cases.)”
This confirms what Reggie had said earlier, eShop purchases on the Switch are tied to your Nintendo Account and that account can be unlinked and relinked and purchased games can be redownloaded. This is what people have wanted. If the account can be unlinked from the system it’s not unreasonable to think it can be linked to a different system without any problems. Now we just need another Direct or an eShop/system OS overview video to go into detail on all of this.
The screenshot is from this Wario64 tweet, BTW.
What happens when you restore the Nintendo Switch to factory settings pic.twitter.com/pjnAv8mFyp
— Wario64 (@Wario64) February 17, 2017
There is also a maintenance mode that will let you initialize the console without losing your save data or user information. This looks like a mode that could also be used to recover from a failed system update maybe? That would definitely be a useful feature as things CAN go wrong with any type of system update, on any platform.
This screenshot was also taken by Wario64.