Higher resolutions and better GPU performance are available now.
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As of March 30th, an update for the Nintendo Switch version of Fortnite includes GPU optimizations. The update includes an upgraded renderer that allows for the game to make better use of the Switch's GPU.

This should result in better performance and increased resolutions in both docked and portable modes. Epic has called the resolution bump "significantly improved" and we're inclined to agree given the details that they have shared. Keep in mind that Fortnite on Switch will still use a dynamic resolution to maintain a constant framerate but "this will occur less frequently, and overall resolution will be significantly higher."

Expected Resolutions

Expected Resolutions Before After
Handheld 1000x560 1170x660
Docked 1390x780 1560x880

Note: that’s a 38% increase in pixels in handheld mode!
Epic goes on to say that players should see about 140MB in storage savings after the new update. A comparison of the visuals before and after this update can be seen in the image above.