Imho Nintendo can save money making a more affordable device with only 500gigs IF they keep the phisical games on the cartridge/disk, even if third party want to go down the download route they would have a lot of space, especially knowing how compacted the games from Nintendo are and how few patches are released by them...
I think Third parties will want to test the waters (especially if Nintendo gives them a gimmick that looks promising), I can see Ubisoft beeing more careful and releasing less games at the beginning while Activision keeps up the Skylanders games, speaking of Activision IF the device has those wheel-triggers then I can see them making a GOOD port of the latest CoD game. EA will release FIFA/Madden but it'll worse than the One/PS4 version since they are terrible at porting :v








