I'm pretty sure from what I've read the wii will be able to play games direct from the SD card.
I'd much rather have that than some stupid overpriced official HD, seeing as there is actually some competition in prices.
If there is some sort of issue that requires the data to reside in the system flash (of which, only about 200MB is actually available for the user), the simplest solution would roughly as follows:
In a Wii with no SD card inserted, nothing functionally changes. VC games, channels, and WiiWare all stay in the resident flash until removed.
In a Wii with an SD card inserted, the system flash becomes a cache of sorts.
Set aside an arbitrary amount (100MB should be plenty, 50 is probably enough), and simply fetch the content from the SD and copy it into the system flash as needed, freeing up space as needed.
Ideally, this process would be as invisible to the end user as possible, with a "loading" icon or something being the only sign something is happening.
I've no evidence this is what's actually going to happen, but it's a likely interpretation of Iwata's statements.
I'm pretty sure from what I've read the wii will be able to play games direct from the SD card.
I'd much rather have that than some stupid overpriced official HD, seeing as there is actually some competition in prices.
If they can pull off a "load from SD" function, or even some goofy caching scheme, it would be trivial to eventually add support for a HD plugged into one of the USB ports.
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