http://gonintendo.com/viewstory.php?id=138586 (near bottom of the page. whole thing is a good read) As for your final question, Nintendo 3DS, in fact, embodies storage (NAND memory). However, we'd like to use it mainly for the system. Our consumers' needs widely vary depending on who plays with Nintendo 3DS. Some won't need the expanded memory at all. Some will download much software onto Nintendo 3DS. If they download many titles, the SD memory card that we will include shall not be big enough. We wanted to make the system, so that, when Nintendo 3DS owners require additional memory, they could do so simply by inserting a new bigger-sized SD memory card. We have designed the system as if the hardware's internal memory can be expanded simply by adding a new SD memory card. The owners can save the software on the new SD memory card and activate the software from the SD memory card. The ability to be able to do so can sometimes contradict with the maintenance of tight security. We would like to brush up on that aspect before the launch.