Nintendo is set to mention external hard drives at this year's E3. Currently the wii is limited by its 512 meg of space on its flash drive. You are able to insert sd cards but have to upload them to the systems 512 meg flash drive in order to play the games. If the external hard drive is made a reality and cheaply VC sales and Wiiware sales will skyrocket. Currently Wiiware, a service of exclusive wii only downloadable games, allows developers to use a max of 43 megs limiting the games to a great extent. If the hard drive is made available and cheaply then the digital downloads will sky rocket. This is pretty much a make or break decision for nintendo as it has many customers dont know you can redownload the games and some just dont want to go through the hassle. The space limitation is making impulse buying of a 5,8, or 10 dollar game a more thought out decision. instant gratification is now being met with reason and that isnt good for a business based on entertainment.
note: i have spent only 70 dollars on VC games (virtual console) and my wii's memory is entirely full. If nintendo wants to keep digital downloaders downloading then they need to add the ability to connect an external hard drive. Sure you can delete the games and redownload them later for free but it is a hassle and you lose your game save data.