I don't know how it compares to PS5 storage, but I'd say it is definitely better than the Switch's 32gb. I expected Switch 2 to similarly skimp like Switch did and only offer 128gb. 256gb, while not a ton, is Nintendo stepping up a little bit and realizing they should be offering a decent amount of built-in storage.
Switch isn't gonna have much in the way of 100-200gb games that seem to apparently be common on the consoles. It might have a few third party games that big, though I think even those will likely be much smaller than their console counterparts, either using the system's AI upscaling tech to allow them to use lower res base textures or just doing more compression for Switch 2 games, or a combo. First party games are probably gonna mostly be in the 10-40gb range I would guess. Indies are gonna mostly be in the 50gb game. Naturally anyone who downloads games is gonna have to get an SD card eventually, but Nintendo is giving gamers much more room vs game sizes than Switch did.
That said, since Switch 2 doesn't take Switch compatible SD cards, that means Switch owners are gonna have to transfer their Switch library to Switch 2 to play on the new system, so for those who do that that very well could be a few hundred gb that you want to move over right away, meaning a new SD card is still gonna be required very early on.
I see a couple people mentioning they only keep a handful of games downloaded on a system at once. I never thought of that. I guess that is a very console centric concept, given that console games are routinely >100gb I guess so you literally can normally only fit a handful of games on a console at once without buying whole terabytes of extra space. With Switch I got a 200gb card early on and that lasted me for years, then I was running low by like 2023 so I got a 400gb card which has plenty of room left over with me having all my games on it. Only downside is I figured I'd be able to use those two cards next gen but instead I just have >300gb unused that are only good with the Switch.








