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SonytendoAmiibo said:

The Switch's game cartridges will use compression technology like most every game on a card does. A 50GB size game on blueray could be half that or less on Switch card.

Games on optical discs or HDDs can also take use of compression technologies. Flash storage is no different to other storage media.

Using compressed data makes sense for some data, but is a no go for other data, especially on mobile devices with slow CPUs and additional battery drain due to decompression of the files.

"If you have a computer with a slower CPU, you should probably avoid this option. This is especially true on slow laptops and tablets. That’s unfortunate because a cheap Windows notebook or tablet will often have a small amount of storage, making this option tempting. But that slower CPU means enabling compression will tax your system and slow things down."

http://www.howtogeek.com/266472/should-you-use-windows-full-drive-compression-to-save-space/