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There is no need for a huge storage solution in the system, just enough for it to install apps etc. I would try to move away from game installs completely.

They all need to get together, come up with a writable cart solution 128GB carts (which updates and patches can be stored on) and if they all use it they will probably be $1-3 each to make and because they are all using it there would be no proprietary hardware fees. Essentially time to do away with BluRays and all jump to a new agreed format.