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Chrizum said:
Why not just release a USB hard drive?

The problem with a USB hdd is two-fold:

 - marketing perception:  it will appear to the uninformed that the USB hdd is required, making the Wii more expensive and complicated.  Uninformed consumers are a large part of the Wii market, which makes this a no-no.

 - encryption issues:  having encrypted software on removeable media could leave it for analysis on a PC to crack it, or possible slow the transfer if the encryption is especially thick (processor intensive). 

 

A possible solution I am thinking of has two parts:  store only the purchase key, with very strong encryption, on the Wii main storage.  Then optionally store the executable on either the Wii main memory or the SD card (or hey, the USB ports).  The Wii would know what software to look for automatically as all the purchase keys are on the main system, and the transfer could be quick as strong encryption would not be required; either the machine is allowed to run it or not.

The marketing perception roadblock would be minimized as long as all games can fit in a blank internal memory, and perhaps not documenting USB as an option even if it is supported.

 

Just my thoughts...