In a recent interview by 'Sega Ages' and published on 'Famitsu', it seems Sega is infact working on an 'emulator' for running Dreamcast games on the Switch console, instead of using the normal re-mastering process for games using existing 'source code', they are going instead for the 'emulator' route for their Dreamcast library.
Horii also explained that, because the developers still have the source code for many of their Dreamcast games, they could theoretically remake or port over certain Dreamcast games altogether. However, for the time being, Sega is leaning more toward simply emulating the games instead. Whether or not Sega will continue to push forward with their "Dreamcast on Switch" development is still a mystery, but at least we are one step closer to the possibility!
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Being an 'emulator' design, it will be interesting to see if and when 'hackers' & 'scene developers' will be able to unbox the emulator and use it to run other Sega DC games unofficially on Switch consoles that are currently exploitable with CFW's and payload/jig injectors.
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