Though, wouldn't this still cost more to manufacture than whatever type of disc that Sony and Microsoft's next machine will likely use? It may not be very much more, but more is more.
I'm banking on it reducing in price so much that it's negligible, and that 8-16 GB is somewhat of a plateau for what games really need as far as capacity, with a special 32GB Square Enix Option (the 32 GB one will be more expensive, and thus should only be used for the most epic of epics. But even so would dramatically drop in price by the end of next year.) I mean of course, they could come out with a new disc that holds 200 GB but what would be the point?
While higher capacity is neat on paper, you don't actually "feel" the higher capacity when you play a game, do you? It's just sort of a fact you see on the back of the box or on a Press release. But what you DO feel is the loading times. If Nintendo is able to get a 16GB cart that's affordable by the end of next year, they'll have a distinct advantage, IMO, because your average consumer will notice the reduced loadtimes a lot more than they'll notice capacity. This isn't the N64 days where the disc medium has almost ten times the capacity.
Think of it like the DS vs. the PSP When the DS started out, the starting size of the Cards was something like 8-64 MB, later expanding as high as 512 MB, though not many games used it. This was vs. 1.9 GB that the PSP offered day one. The reason that PSP media lost was due to a critical misunderstanding of the types of games required for handheld devices. Loading times are a no-no, as well as the power consumed by it being reliant on an electric motor.
However, it is my opinion that these are not just problems on a handheld, but game problems in general. If Nintendo were to offer a solution that presented HD games at 60 fps (due to falling GPU compnent prices) with a starting capacity of 8 or 16 GB and have them load instantaneously, it would definitely make a larger impact on consumers than more numbers on a spreadsheet.
And so I could see third-parties complaining about the higher cost of it.
Two things, one good and one bad.
Good: I am of the opinion that third parties will accept a cart standard, seeing as they have no problem with the DS's or 3DS. That could be because of Nintendo's dominance and the "When in Rome" mentality, butit's not liek they are pining for loadtimes and discs on the handheld front.
Bad: It is entirely possible that Nintendo could make a console that suits every need and has no flaw, and certain third parties would still complain (suspiciously very publicly and loudly)about whatever it is that they will complain about next gen, be it "carts," "kiddy," "casual," Nintendo-fanboys-only-buy-Nintendo-games, they're Japanese, etc. so it wouldn't really be in their best interest to kowtow to certain third parties who probably won't develop for them, ever, under any circumstance. Better to bring something that would please current and potential customers and revolutionize game functionality and hope a high userbase will work this time around.