The biggest obstacle for this device is going to be Storage. Presumably games will be a mandatory install rather than running from physical otherwise the load times and data streaming will be horrendous. The
only way around this would be a much faster cartridge which would mean much higher production costs for physical games, don't see that happening. Third Party already hated using large cartridges on Switch.
256gb is not enough and current SD cards are too slow for next-gen games. We heard earlier this year that Samsung is working with an unnamed company to create a custom product, a fast SD card. Potentially this could be used for the Switch 2 and allow games to be installed to them but still have decent performance:
https://news.samsung.com/global/sam...ce-ai?utm_source=nr_twitter&utm_medium=social
The problem is those SD cards are probably going to be expensive. We'll have to see what Nintendo has in store but it could be a problem for particularly 3rd party games. Install CoD and over half your storage is gone and only expensive new SD Express MicroSD can be used to install games to.
This is the problem Nintendo has to have solved and we'll see what their plan is. If it's expensive memory cards then yikes.