In a handheld? That's an awful lot of space.
Does the Switch game card take up an awful lot of space for a handheld? They're about the same size.
I hope they don't use it. I went to Amazon and the cheapest and lowest capacity CFExpress A card with 80GB costs 99 dollars. The cheapest 260GB card costs 199 dollars and only achieves a peak of 800MB/s reads. That's way too expensive for that amount of storage and speed.
CFexpress cards are only currently supported by very high-end (mostly professional) cameras. That means there's a combination of a very small market, and a customer base which isn't price sensitive, which is a recipe for extremely high margins. The Type A cards are currently only supported by Sony, whereas Type B are supported by the other manufacturers, so it's a niche within a niche, meaning even higher margins.
It's pretty clear that current cards are being sold at extremely high margins. The cards are just NVMe drives in a plastic case, and I mean that literally.
You can just buy an M.2 2230 drive and stick it in a Type B housing. Here's
a 256GB M.2 2230 drive for which supports PCIe 4.0 and 5GB/s read speeds for $39.99. Those are more expensive components without the plastic case. There's no way the plastic case is costing the manufacturer $160. For another example, Delkin launched a new 1TB card a few months ago
with a deal dropping the price from $400 to $100. This isn't the kind of industry where you do loss-leading, particularly on a brand new product, which means their $400 price must be at least 75% profit, if not more. This is pretty much what I'd expect, as you can get 1TB M2 2230 drives for under $100 pretty easily these days.
The reason why I'm confident that prices would drop dramatically if Nintendo entered the market is that it would completely change those two factors that are currently driving prices so high. On the size of the market, the Nintendo Switch currently outsells the entire dedicated camera industry by 2x on an off-year. You can see the yearly shipment data
here for the camera industry. What's more, CFexpress is only supported by a very small portion of those cameras, the very high end ones. The average unit price of cameras sold last year (from the same report) was 85,000 yen, or about $575 USD (although this may be wholesale price, I'm not 100% sure). The cheapest cameras with CFe support start at around $2000-$3000. Switch is likely selling perhaps 20x as many units a year as the entire camera industry is selling CFe-compatible cameras. I would expect that Nintendo would probably outsell the entire current CFe install base on launch day.
This means two things, firstly that the market for CFe cards (type A specifically) would increase massively, meaning much larger economies of scale, which means lower prices. Secondly, the majority of CFe Type A buyers would be Switch 2 owners, almost instantly. Instead of professional photographers, for whom memory cards are a business expense and the risk of losing their data (which could be worth more than their equipment) is something that will discourage them from buying cheap cards, you've got a market which is largely comprised of very price-conscious Switch consumers who will happily choose a cheaper option if they have one.
Because of the shared tech with NVMe SSDs, CFe cards also have a very low barrier of entry to new manufacturers.
B&H have 16 different CFe Type B card manufacturers on their website, with 154 different cards, which is a lot for such a small niche (about the same as UHS-II SD cards, which have been around for a lot longer). CFe Type A has fewer manufacturers at 7, but again it's only currently supported by Sony, so is a niche within a niche.
A low barrier of entry and low per-unit manufacturing costs means if current manufacturers don't drop their prices, someone else will just come in and undercut them. If there are tens of millions of Switch 2 consoles out there and other companies are trying to make 75% margins on the storage cards, you can come in with a product at 50% margin and take a huge chunk of the market. Then someone else can undercut you with a 30% margin and take that market share themselves. The reason this doesn't happen in the current CFe market (aside from photographers trusting existing brands more) is that there's no money to be made fighting over a tiny market at 20-30% margins. There would absolutely be money to be made fighting over a Switch-sized market at 20-30% margins.
The final issue would be prospective buyers having the same reaction as you; looking at existing CFe prices and thinking it's going to be crazy expensive. Hence, Nintendo would need to immediately announce branded cards at realistic RRPs.
Just as a frame of reference, when Microsoft launched their proprietary expansion cards for Xbox Series consoles in late 2020 (which are PCIe 4.0 CFe Type B with just enough changes to break compatibility), they were charging an RRP of $220 for the 1TB model. At the time, a
cheap 1TB PCIe 4.0 NVMe drive would have cost you an RRP of $175. That's a markup of about 25% over the cheapest equivalent M.2 2280 drives. If we were to assume a manufacturing partner for Nintendo would want the same markup as they were getting on the proprietary Xbox cards at launch, then we'd be looking at prices right now of around $50 for a 1TB card, based on a base price of around $40 for
PCIe 4 M.2 2280 drives today plus 25%. Competition would drive that lower among non-branded cards.
The final factor is that Nintendo's traditional card partner, Sandisk, doesn't sell CFe Type A cards yet. Ordinarily I might be worried about them not wanting to price too low to avoid undercutting their own professional cards, but they don't sell comparable professional cards, so they wouldn't have any issues there. Honestly I've been a little surprised that Sandisk haven't started selling Type A cards yet, being the largest memory card maker, and with competitors like Lexar having jumped in. It wouldn't entirely surprise me if they're holding out for Nintendo to come in. They've partnered with Nintendo on this for a long time, and Nintendo would have had to consult companies like Sandisk about CFexpress cards before committing to using them, so they may have an agreement with Nintendo to sell branded cards and see no incentive to jump into the market before then (particularly given current cards are limited to PCIe 3, whereas cards launching alongside the Switch 2 should be PCIe 4, so they'd have to change hardware at some point regardless).