The main reason for digital only would be greed, ignoring that is ignoring the elephant in the room.
Digital only would mean Nintendo and their third parties make $10-$15 more per game sold since retailers are cut out of the equation and box/shipping costs are removed too.
That said I don't think Nintendo quite frankly has the balls to do this. They're too entwined with their retail partners, especially in Japan and there would be other downsides like a loss of retail space/visibility, every time you walk into a Toys R' Us or Wal-Mart game section it's a walking advertisement for Nintendo software/hardware. I don't think Nintendo will give that up easily.
In the *long long term* though I feel digital only is inevitable. Personally I don't really care that much one way or another, I just want to play the games.
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