Is it possible? Certainly yes. The new iPhone is supposed to have up to 512GB of memory on top of being smaller than the previous plus/xl version.
It's up to Nintendo. I think they shouldn't tho. It would be better to simply bundle it with a cheaper Micro SD Card. But if the memory is cheap enough, I say yes... go for it and make 64GB/256GB/512GB models the standard.
Bet with Teeqoz for 2 weeks of avatar and sig control that Super Mario Odyssey would ship more than 7m on its first 2 months. The game shipped 9.07m, so I won