The Nintendo Switch will offer a measly 32 GB of internal storage. I think “yikes” is the appropriate response to that, yes.
Some of that 32GB is dedicated to system software use. So, you won’t even get all 32GB to store games and the like. That’s the bad news. The good news is that the Nintendo Switch supports microSDXC cards of the third-party variety. You can pick a 64GB microSDXC card for around $25 today, and that price will drop with time.
The system even supports 2TB cards, which aren’t on the market yet.
Nintendo told Kotaku that they might support external hard drives via USB down the line, but that won’t be ready for launch.
How is all that data handled by the Nintendo Switch?
If you do have a microSDXC card in use, Nintendo explained how games and game saves will be handled.
If no microSDXC card is used, everything is stored in internal NAND memory. If a microSDXC card is used, game save data is stored in internal NAND memory while data that can be redownloaded, such as digital games, game updates, and DLC, is stored on the microSDXC card. Nintendo Switch game cards are non-writable; game save data is stored in internal NAND memory.
A card seems like a must-buy if you think you’ll be downloading games on the Switch.