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Digital mostly.
For the Wii U I made a quick calculation and came to the conclusion that Nintendo 1st & 2nd party games easily fit in a 500GB external HDD (even a few 3rd party will fit in there - ALL Wii U games probably fit in 1T).

I recently bought a PS4 500GB with the intention to not need more storage. The games I played so far I will never want to play more than once (maybe with the exception of NMS).