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There is no misunderstanding at all. There is a misunderstanding that you think people have a misunderstanding.

The internal storage capacity is needed especially for 3Rd parties when they patch games. The patches can go from 100mb to 10gb.

Then there is the OS that will take up storage as well as possible dlc and expansions, especially 3rd party stuff.

Paying for online isn't an issue for me. You pick one system you game with it money is tight and you get your free games too. The difference here is that Sony and MS have both been transparent about what you pay for age what you get in return:

1) mp
2) shareplay (Ps4)
3) online save storage
4) number of games and across what devices
5) discounts
6) free themes

Both Sony and MS offer around 3-4 free games, some via BC age some via cross platform. Nintendo on the otherhand has mentioned nothing. The system isn't ready and won't be ready for launch. From their wording, cross party chat will be through your smart device I.e. Like whatsapp call or Facetime audio not through the system. Their free games will come from their NES / SNES library she only 1 game per month.

Now if this paid service is £10 a year, then it's okay. You essentially get less than 1/3 of what your competitors are offering. You could even argue you get about 1/4 of that of Sony and MS. However, there is a good chance Nintendo will charge £30+ and no one in their right mind can justify that.

Nintendo has been building this console for a while. They set the date and they've had over a decade to invest in their online services as well as build a infrastructure for it and here we are in 2017 and they are still playing catch up.

The consoles seems to be rushed. The online isn't ready, the games aren't ready, third parties aren't ready and yet everyone has to pay in full.