There’s no doubt that Nintendo has a great deal of experience with file compression. Even when the company’s games support 4K resolution, they still come in very reasonable sizes. Donkey Kong Bananza, scheduled for release next July, will come in at just 8.5 GB.
For comparison, the original Super Mario Odyssey on the Switch was 5.6GB in size and didn’t support 4K. Mario Kart World was probably larger at 21.9GB when it was released: