Nintendo Switch 2 update blocks 3rd-party docks
Is it anti-consumer or just an honest mistake?
Recently, Nintendo released an update for the Switch 2, 21.0.0, and some users are reporting issues with 3rd-party docks. People are reporting that their consoles are charging, but no output to their display shows. Many jump to the conclusion that Nintendo is intentionally doing this to drive away competition, and to increase sales of their own dock (which is now priced at $124.99). While this may inadvertently be true, Nintendo reported to Tom's Guide that "Nintendo does not have any intention to hinder or invalidate legal third-party dock compatibility."
What some reports have been saying is that Nintendo may have replaced the Product ID and Vendor ID for the HDMI and display output, so 3rd-party docks won't show anything because they do not have the correct IDs updated in their firmware. Essentially, the Product and Vendor IDs allow for a handshake so that the Nintendo Switch 2 can connect to the dock and output video correctly. When the docks do not have the correct IDs, the handshake won't happen and the display will not output video. Thankfully, many dock manufacturers have been quick to release firmware for their docks to update to support these new IDs.

The issue with 3rd-party docks is a trivial one. Nintendo is simply alienating a large group of their customers by pricing their dock at $124.99. If the price was even slightly more attractive, this issue would be significantly reduced. In any instance, people would still buy 3rd-party docks, so Nintendo needs to work with these vendors to continue to ensure compatibility.
The Nintendo Switch 2 is a great console and improves on many of the great features of the original Nintendo Switch. We will have to wait and see what Nintendo does soon.