It's not difficult to see the difference in pricing between bluray and memory. You can find bluray movies on discount labels in the UK for as little as £1 which allowing for VAT, profit, manufacture, box, printing etc clearly indicate bluray's cost pence to produce. Flash memory is considerably dearer and Nintendo use specialist cartridge manufacturer Macronix which isn't going to be that cheap. Probably a few dollars per unit depending on capacity and capacity will be low.
If the development system spec info is correct the switch has 4GB of shared memory and that has to be video memory, main memory and some data storage as cartridges nowadays normally come with heavily compressed code to save on cartridge costs. The Switch only has 32GB of flash memory and cartridge games won't be able to use much of that.
If the cartridges are 32 and 64 gigabit (4 and 8 gigabytes) at launch then you will be able to download a few onto the 32GB of built in memory.
It's not even in the same ballpark as ps4 or xbox one it's still pretty much in the same area of performance as wii u, ps3 and 360. Overall about 2x their performance when you factor in graphics gflops and memory bandwidth.
However it looks like cpu performance is 38,400mips for all 4 cores at 2ghz. Assuming portable mode is lets say 1.2ghz would be 23,040mips which compares to about 9,000 for wii u, 19,200 for 360, ps3 is 35,840. The ps4 is about 38,400 mips and the xbox one slightly more. Neither xbox one or ps4 really pushed the envelope when it came to the cpu. This is just a rough guide to cpu performance not gpu. The x86 processors tend to deliver more performance due to cisc optimisations and 64bit cpu's will perform better with 64bit optimised code.
So looking at that it looks like the switch has reasonable cpu performance so it does have potential to run fairly sophisticated game engines with realistic physics etc. I wasn't expecting the cpu to score so high to be honest. However taking the low memory bandwidth of 25.6GB/s into account with the weak gpu performance your looking at something that may be able to make a stab at ps4 games but with weak horrible visuals in comparison. However those weak visuals will work within the restraints of only 4GB of memory and only 25.6GB/s of memory bandwidth.
This is all based on the so called leaked spec but it does seem likely to me. If Nintendo were buying the most capable hardware on the cheap this seems close to the best option.
