This is mostly right. I agree that western high-level AAA-productions are also unlikely in the future. But mid-tier and smaller games are possible. And Switch is targeted by games usually not on console. It gets a lot of mobile ports. Also a lot of stuff usually on PC makes it's way to Switch, because of the possible mobility the game gains and because of multiple input-methods. The input-methods are the reason for Civilization as a bigger example of one such game. I think Switch can and will thrive on these games, different genres and games than the usual western mostly action and shooter AAA-games.

Because highest price point on market was always $60 if we dont count some kind of special editions/steal books and similar. No one would make price point of $70 if highest point for any game on market is $60, not Nintendo, R* or any one else. No its not little difference between downloading 5GB and 20GB, especially when Switch has internal memory of around 25GB for user. Yeah, I speculating about GTAV also, game was hinted before for Switch and its hinted it's one of those game this problem effect on it also. I also gave answers on all those 4 solutions why maybe why they are not using those solution or they are not good solutions (and $70 price point is easily worst one). Dont act like you talking about facts, because you don't, like I said, we don't know exact details, we can only guess and speculate, while clear fact is that Switch carts cost more than BD disks for PS4/XB1 espacily when we talking about bigger cart sizes (going from 8GB) and that Switch has capacity problem, so its logical to assume that those things are problem for some 3rd parties.

I'm sure they've looked at other options in creating games in other ways like SD cards or the disk-like structure like the PSP, but it probably wasn't feasible or didn't feel like it worked for them in regards to the Switch (since the games are being placed in a tablet with all the infrastructure inside the console).

So where is the big problem? Usually most big third party games come in at least 3 editions:

They could offer the cheapest edition for $60 on a 16 GB card with a partial download and the more expensive versions (with much higher profit margins) on a 32 GB card with the full game on the card (or the "ultimate edition" even on a 64 GB card if necessary).

I think you might be giving Nintendo a little too much credit. I think it's more likely that Nintendo didn't think developers would really need such large cartridges so soon or at all, and if they did, the'd be willing to pay for them. I'm not saying that other solutions such as using SD cards for cartridges are even remotely feasible, but there's no way Nintendo ddin't know when designing the Switch how much these cartridges in such a large capacity would cost, and decided to go with it anyways.

We dont know even full game could fit on 32GB cart not to mentione 16GB, and how much download would be even in case of 32GB cart. So if they maybe use 32GB card with aditional download, cheapest option should be $70 to have similar margin of profit.

Fact is that Switch carts size/cost are real problem for developers in any case espacily when we talk about big games, this only proves that, Here Abstraction Games about the port of Ark Survival to the Switch:

He continues: "Performance is not really the issue. The issue instead is in the size of carts. The 32GB carts are expensive, you shouldn't be wanting to do that. So we need to fit everything on 16GB, whereas the standard game on PS4 is much, much larger. It's a crazy ratio we're talking about."

https://www.gamesindustry.biz/articles/2018-03-21-how-they-got-ark-survival-evolved-working-on-switch

Swear? Look at price point of Switch, PS4, XB1, PS3, 360, Wii U, Wii...you will see that highest price point is $60 for any platform, expect of special edition, steal books and similar.

General rule sure. But we have had games costing over 60 USD (standard edition) since at least SNES.

https://www.gamestop.com/wii-u/games/hello-kitty-kruisers/114210 (regular price 69.99)

It may not be common anymore to launch over 60 for regular editions, but it's hardly a prohibition.

Yes you could, buy maybe game is more than 40GB with all updates, we dont know thats a point. All Wii U games could fit on Wii U disks and Wii U disks were not expansive, so totally different situation compared to Switch.

Yes, Switch situation is even worse, agreed. And if you at any point need 50GB updates (As I said we already have had 100GB day one patch) then the size of the cart discussion will become null and void.

Hinted by those same insider they were very accurate about previous Switch rumours or generally rumors and insiders information.

Ow ok, rumour.

We still talking about rumours, but when rumours come from multiply very credible insiders that were very accurate before, than those rumours are definitely much more believable.

You may believe how many rumours you want. They may still be wrong on any given situation. Can you show all of them having 100% accuracy exaustively? Because I prize reason over rumors, and letting money stopped isn't a smart thing. Nor is avoiding to get money. Could your justification be true? Sure it could, it just doesn't seem like it. As other said, they would know the price of the cartridge before hand, they would know the targeted size as well.

But point is that every company wants maximum profit in any case, so they will work to achieve that in any case, and $10 less profit per game is huge problem for any dev including R*, thats why no one using 32GB Switch carts yet. Again, we dont know details, maybe from start was plan to release game on 64GB carts but delay of them delayed game also, or maybe 32GB carts ended much more expensive than they thought so they waiting for cheaper price point of 32GB carts, on maybe from start was plan to release game in 2019. alongside cheaper 32GB carts or 64GB carts, maybe game is canceld and maybe they never even planed to release game on Switch (less likly). Again, we can only speculate for now what could be with GTAV, but fact is that we talking about real problem when we talk about size and cost of Switch carts that definitely affecting 3rd party devs espacily when we talking about big games.

Sure every company wants to maximize profits... Still Sony doesn't go and make games as cheap as Nintendo to increase their profit, each company have their own study on how to do their business. And if as I showed you, waiting two years to release a finished game may end up giving less profit than eating up the immediate cost. Sony and MS have paid several dozen millions on marketing exclusivity itself, so I fail to see how a deal would be impossible for R* and Nintendo.

So you think it is less likely that they decided not to make a Switch version than they didn't had a firm price and release date from Nintendo and that they have no contract for the release of the game or that they will postpone for couple years due to it? Just look how much sales Rise of Tomb Raider lost due to postponing PS4 release and calculate how much it must have costed MS to buy the timed exclusivity and you may guess the cost of standing still. But I like that you just crossed all the revenue analysis and will hold strong on losing all revenue from the sales.

What @Mnementh post, also proves that, what that dev said is totally in line with what insiders from Resetera also said.

Here Abstraction Games about the port of Ark Survival to the Switch: "Performance is not really the issue. The issue instead is in the size of carts. The 32GB carts are expensive, you shouldn't be wanting to do that. So we need to fit everything on 16GB, whereas the standard game on PS4 is much, much larger. It's a crazy ratio we're talking about."

Are we comparing ARK Survival with GTA V? Sure, we can say that God of War is totally feasible on Switch besides the small issue of cartdrige, must also be the reason RE7 launched without even having a cartridge, but owww wait streamed.

Yeah, I forget about that, it very obvious we talking about real problem when comes to size and cost of Switch carts, and that effecting most on big games.

So where is the big problem? Usually most big third party games come in at least 3 editions:

They could offer the cheapest edition for $60 on a 16 GB card with a partial download and the more expensive versions (with much higher profit margins) on a 32 GB card with the full game on the card (or the "ultimate edition" even on a 64 GB card if necessary).