Nintendo could use a both a traditional hard drive (or heck even have an empty bay for a 2.5" hard drive for storage) and smaller SSD integrated for the operating system. However, SSD can fail as well....
The fail rate for HDDs is quite a bit higher than it is for decent flash. And allowing expansion via USB is just as valuable if more more than having an empty bay for a media-centre style device. It's all good and well for techies to talk about how easy a HDD upgrade is but a fair chunk of consumers would freak out about the idea.
Anyways, the fact is that storage is getting cheaper faster than games are getting bigger. The premium Wii U lets you store about two "average" full sized games. For the same price they spent on that flash in 2012 they could fit ~8 games now, and upto ~32 by the time I reckon they'll be ready for the successor. And by average size I mean games like Bayonetta 2 or Batman, a lot of games like 3D World, Wind Waker HD and Nintendo Land are about a tenth of that size.
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Topic: Is Nintendo saving Gamecube, Wii Virtual Console for their next console?
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