That was my argument.

Oh, ok then. I guess we agree?

You are missing the point.
I am talking about total addressable market sizes here.

In saying that, the OG Xbox had DVD support, HD games and far better visuals and performance than the PS2, yet sold less than a quarter.

   But the total addressable market has been on a downward trajectory since the 7th console generation in terms of total addressable market size.

OG Xbox had half as many games as PS2 and required a DVD Playback kit to play DVDs. According to Pricecharting, there are around 900 Xbox games and around 1800 PS2 games. Can you define total addressable market size in relation to the video game industry? Who decides what the total addressable market size of the videogame industry is?

PS3 + 360  + Wii = around 272 million units sold lifetime. But at this time many customers owned multiple consoles. Wii60.com was a website that told people to buy both a Wii and a 360 for the price of a PS3. https://web.archive.org/web/20060706052510/http://www.wii60.com/

PS5 + Series + Switch = Around 254 million units sold lifetime. The generation isn't over yet though. This generation has a much healtheir slice of the gaming pie than 7th gen. Despite Microsoft doing their very best to no longer sell consoles. Despite a massive number of Wii purchases being thrown into a closet roughly one year after purchase. Despite RROD causing many people to buy a 2nd 360 after their first one broke.

Xbox losing sales is a sale that Sony or Nintendo picks up.

Or a sale that PC picks up. Or a sale that just disappears into the wind because the person went from having two consoles to one.

PS3 + 360  + Wii = around 272 million units sold lifetime. But at this time many customers owned multiple consoles. Wii60.com was a website that told people to buy both a Wii and a 360 for the price of a PS3. https://web.archive.org/web/20060706052510/http://www.wii60.com/

PS5 + Series + Switch = Around 254 million units sold lifetime. The generation isn't over yet though. This generation has a much healtheir slice of the gaming pie than 7th gen. Despite Microsoft doing their very best to no longer sell consoles. Despite a massive number of Wii purchases being thrown into a closet roughly one year after purchase. Despite RROD causing many people to buy a 2nd 360 after their first one broke.

GTAV was 360/PS3 game. The Switch has 8 times the RAM of either of those consoles. The reason GTAV wasn't only Switch 1 is it couldn't fit on a 32GB card and the internal storage on the Switch was paltry. 

Physical games are over, people just need to get over it. Nintendo honestly shouldn't even be offering this, physical games on a portable platform is stupid at this point. PS6 will not have physical games, neither will whatever the next XBox (PC in a box) is.

Nintendo is just stuck catering to this shrinking market because some parents must have a physical copy of a game for birthday/holiday gifts and Japan being a "trade in your game after a week" culture, but ultimately that's not going to sustain physical games and people are going to have to move on.

The economics just don't make sense. This is NOT an N64 type situation, the people trying to push that have no clue what they're talking about but even at a modest cost, it just doesn't make sense economically.

A 64MB cartridge likely still costs in the range of $6-$10 a pop, then you have the cost of packaging + shipping (lets say another $4-$5/copy there) and then the retailer takes their own cut ... that's $8-$10 there ... physical games can end up costing $15-$20+ per copy over a digital sale for a publisher. That means really a physical game should cost at least $15 more than a digital version of the game.

The 64GB only thing is likely Nintendo made a deal with the supplier and having one line of 64GB cards in the long run is the cheapest option, Nintendo doesn't want all these other sizes as the production numbers on physical cartridges is supposed to be small. The message is pretty clear that especially for 3rd party games, Nintendo just expects them to use the GameKey option most of the time.

The format the game is on isn't important, the game is. I sure as fuck wished during the freaking N64 era when I was dying from huge game droughts that we had the option for digital downloads + onboard system storage then. Being able to download even 250MB max games would've been a godsend and made the N64 a far, far better system. 

Handheld consoles are consoles, too.

PS3 + 360  + Wii + DS + PSP = around 490 million units sold lifetime.

PS4 + XBO  + Wii U + 3DS + Vita = around 278 million units sold lifetime.

And how do you know that many customers didn't also own multiple consoles last gen and this gen?

Most people that owned a handheld also had a dedicated gaming console in their house. Do you honestly think that a majority of DS or PSP owners didn't also own or have access to a home console?

"And how do you know that many customers didn't also own multiple consoles last gen and this gen?"

That's my point. You can't simply count up lifetime total sales and state that one number is bigger therefore better. You have to take into account the fact that owning both a 360 and a PS3 offered a bigger variety of games than owning just one, while also taking into account the fact that the majority of Xbox games are on PS5 or coming to PS5. And not only that but you have to take into account the fact that Xbox 1st party output took a huge nosedive going into 8th gen from 7th gen. And not only that but most Wiis were thrown in a closet a few years after use. 

Anyway the point of all this is that you can't simply count each console as an individual customer and then claim the market is shrinking when total lifetime sales of all consoles combined go down. It's not that simple. 

Anyway the point of all this is that you can't simply count each console as an individual customer and then claim the market is shrinking when total lifetime sales of all consoles combined go down. It's not that simple. 

I'm not a tech guru, but wouldn't the type of stored data effect how much data is needed? So it may not needed say the equivalent of 115 gigs stored on disc. Again, i'm no expert.