Nintendo Online is available now along with the release of a brand new firmware update. This was revealed in detail earlier through a Nintendo Direct.
Currently, you can subscribe to a 7 days trial for Nintendo Switch Online and it is possible to play through 20 NES games this way. However, a detailed breakdown of the files associated with Nintendo Switch Online now reveals that it is a simple emulator that is running the games with a fancy UI.
The details about it were shared on Twitter and the gist of it is that you can use it to create your own custom NES games that can be used to play online on the Nintendo Switch. This is assuming that Nintendo doesn’t block it through anti-cheat means since this is only possible on a hacked Nintendo Switch.
in theory you can easily add entirely new games and if both players were using the same file setup, could play online with them together.
Here's to hoping they didn't implement anticheat into it for whatever reason so us modders can enjoy official online games lol pic.twitter.com/L4e0BeSEsd— kapu | the Gay. (@KapuccinoHeck) September 19, 2018
ok so
this is incredibly basic but it shows that fully custom games ARE possible!
hakchi for NES Nintendo Switch Online when?#NintendoSwitch #NintendoSwitchOnline #NES pic.twitter.com/OBYn3dLOtV— kapu | the Gay. (@KapuccinoHeck) September 19, 2018
There is not a lot to go on here, but it shows that this is basically an emulated version of the NES games that are possible to play online. Nintendo appears to have taken the shortcut here instead of creating something from scratch.
Nintendo Switch Online can be bought per month for $3.99 or per year for $19.99. There is also a family share plan available for those who want to share it with multiple accounts at a cheaper rate.