So far, these rumors all seem to indicate a bigger step up than most of us anticipated.

For me, I just hope we don't end up disappointed.

There are multiple Switch 2 versions with different storage sizes; the higher end one has 512GB.

Exactly. It's going to be sad if Switch 2 (even in docked mode) just barely matches an Xbox One in power. Or even worse, yet again between Xbox 360/PS3 and Xbox One/PS4 in specs. If it can't even match an Xbox One, it would be a glorified Switch Pro in the specs department. 

You new to Nintendo or something? And have you never heard of SD cards? Your comment makes it seem like you have no knowledge of the Switch.

Plenty of Switch games are >10gb and it only has 32gb. Hell, some games on Switch are larger than the usable size of storage in the Switch. 512gb would be ENORMOUS compared to what one would expect for the next system. Everyone that has a Switch buys SD cards (unless they never buy digital) that have way more storage than the system. No reason to think next gen will be any different.

512gb is 16x larger than what the Switch has. So if Nintendo goes with the same storage strategy as Switch that would mean they expect games to get 16x larger. Obviously games are not getting 16x larger. Also, Nintendo makes affordable systems, so there is no reason to increase the cost of the system by adding a bunch of storage when they know regardless of how much storage they put in it people are going to need to get a large SD card as well. Everyone knows they will be getting an SD card far larger than what the system will have.

512gb would make no sense for Nintendo to do. 256gb is possible, though I would think it would be more likely the choice for a later upgraded model (the way Nintendo upgraded the OLED to 64gb). 128gb is very likely and would be in line with Nintendo's decision to do 32gb in the Switch. 

All the rumors so far seem a bit exaggerated. No way Nintendo is putting out a system that sells for higher than $399. That'd just be a terrible business decisions for them.

In this rumor it seems obvious the screen size and the storage size are too large.

RAM might be right or might be slightly too large. I'd say absolutely minimum they go is 8gb RAM but I think 10-12gb is definitely possible.

Realize that if its a 7inch screen, not an 8inch screen, then we're probably just talking the same screen as the (soon to be 7 year old Switch has), just 0.8in larger. That's gonna be cheap. Also Switch launched at $300 with plenty of profit presumably 7.5 years before Switch 2 will launch and it has 4gb RAM, with that amount of time passed its not unreasonable in terms of cost to expect 10-12gb RAM keeping it in line with technology improvements from a $300 Switch. And the 512gb storage is very obviously false, 128gb is probably the most likely amount and 7.5 years to move from 32gb on Switch to 128gb is probably in like with technology gains over that time.

So if we make reasonable estimates that some of these things are exaggerated we still get a system that's basically as powerful as the rumor suggests, but cheaper than the rumor would suggest. This realistic system is definitely at very most $399. And if its a bit less powerful than the rumors suggest it's probably doable in the $350 price range.

Comparing a likely next gen system to the decade old PS4, a PS4-level spec'd Switch 2 with DLSS 3+ to basically give it PS4 Pro / Xbox 1 X level capabilities, same now likely extremely cheap screen as the now very old Switch, and increases in-line with tech gains over the years for RAM and storage....nothing about that suggests an overly expensive system over $400. Depending on the choices made that could land anywhere from $350 - $400.

Dev kits have higher specs than consumer models. Just something to keep in mind. Whatever Nintendo is showing is not a final consumer-manufactured product but a dev kit.

The Switch 2 will be a large upgrade over the Switch 1. The Nvidia leak basically already confirmed this anyway.

The people who keep trying to bring up past Nintendo generation transitions purposefully are deceitful in how they recount the past and leave out pretty huge details.

For starters, almost every Nintendo system has a had a full generational leap from its predecessor when the time came to upgrade. NES to SNES, SNES to N64, Game Boy to GBA, GBA to DS, DS to 3DS, etc. etc. etc. These are all massive upgrades from their predecessor.

There are only two exceptions, the GameCube to Wii and arguably the Wii U to Switch (though this is tricky because the Switch is the successor to the 3DS just as much and there it is a monstrous upgrade). But in these two instances, Nintendo had an absolutely industry changing hardware feature (the Wiimote and true hybrid console functionality) that drove hardware adoption.

If you don't have that, you're not going to sell anywhere close to the same numbers in that scenario. This is what those people never will tell you. A Wii with a GameCube controller that has some motion/tilt control wouldn't even sell 25 million units with that chipset. A Switch that isn't a true hybrid but really more of a Wii U-2 would've bombed also.

By and large Nintendo DOES need large generational leaps to differentiate their hardware, it's 100% needed if you don't have an industry changing hardware aspect, and I doubt they have it for Switch 2. The problem is you can't just pull a hardware miracle out of your ass every 5-7 years, things don't work like that. Those types of ideas come around once in a while and not in a predictable fashion.

The Switch 2 needs to be a large upgrade hardware wise over the Switch otherwise it's going to create an impression of "hey wait a minute ... this just looks like the Switch I already have" if it's some mediocre thing that's like only 2-3x the current Switch. Past that Nintendo's developers will need it, it's hard to top Tears of the Kingdom, Mario Kart 8, Xenoblade 3, etc. etc. if you only have 2-3x the horsepower to play with.

This is why when you see the Nvidia leak, their internal data shows the Tegra T239 at 6x the CUDA cores the Switch 1 has. That's easily a full generation upgrade, you factor in potential higher clock and DLSS and you are talking about a monster upgrade. There's also life cycle to take into account, now that Nintendo knows the Switch concept is a hit it only makes sense to want the best hardware you can get so that the hardware is able to have as long of a product cycle as possible without looking too dated in later years. 

I would be happy with specs such as this like everyone else. I would also be happy to spend several hundred for it, Nintendo know their core fan base would pay up.

There is an idea that seems common on this forum that older => cheaper.

It is important to remember that when companies like Nvidia and Nintendo plan hardware, they are considering how much something will cost 5-10 years now as much as it costs today.

Having older technology that is more expensive because you're the only buyer of it isn't ideal in those circumstances.

It's best to optimize for cheap but relatively new hardware (that is at the bottom of a binning process, see:https://www.tomshardware.com/reviews/glossary-binning-definition,5892.html ) than it is to buy cheap hardware that is cheap because it is old.

We have no idea how new Nintendo president Furukawa thinks either, the last hardware made under Yamauchi (the GameCube) was very powerful, under Iwata they went a different direction because the PS2 just ate their lunch and were forced to pivot. But Furukawa is younger and also in a very different situation. He was a child with the Famicom (NES) and then in his college years was probably into the Playstation. The Switch is Nintendo's most successful hardware platform ever (yes, even if it doesn't outsell the DS it will sell far more hardware + software combined and make Nintendo more money). 

He's a young president coming and inheriting the huge success of the Switch. The situation Iwata entered into was totally different, the GameCube was floundering in his first few years and then panic button was hit when PSP was announced in 2003 (a year into Iwata's tenure) and Sony already having eaten Nintendo's home console marketshare looked poised to disrupt the portable market also. So he got thrown into the lion's den straight away. 

Who knows how different the Iwata era would be if for example he was coming into his presidency and the GameCube was a large success. 

The other thing is the hardware designer for most of Nintendo's past hardware -- Genyo Takeda retired in 2017 so this new hardware is basically the start of a new era one way or another.