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superchunk said:

As for Nintendo, they'll still make profit on this easily. The digital game is far less costs as a physical, these deluxe editions are just DLC content and a fraction of the dev costs. Even if it is a wash or loss, that is just used as marketing to launch a new product.

It is perfectly feasible.

Trading in a physical copy for a digital copy is definitely more feasible, I was assuming the OP was implying physical for physical.

Still run into the problem of space... The Switch isn't exactly suited for digital games, an 18gb+ download of smash would quickly highlight the problem the system has in that regards.