Here are the important bits:
The console, codenamed Project Café, will include 8 gigabytes of on-board flash-based memory, presumably for game storage.
Nintendo's disc format for the new console will hold 25GB of data
This certainly should help to make the new system very attractive to 3rd party developers. I am somewhat troubled by only having 8gigs of storage within the system, but I imagine this is an attempt to keep costs reasonable.
Thankfully however,
The system will also support saving to SD cards.
...I'd guess Nintendo will make the SD card useable much like it eventually became on the Wii, so that should make it fairly simple (and cheap) to get past the initial 8gig storage limit.
I also find it interesting that Kotaku doesn't actually say what the new Nintendo disk format is based off - this leads me to think Nintendo is again forging it's own path to limit piracy. If I were in Nintendo's shoes, I'd be looking to licensed Toshiba's HD-DVD format (good luck finding HD-DVD burners and blanks today!). I bet Toshiba would set that deal up for a song.
Anyway - again - E3 cannot get here fast enough!
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