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The keycard games are digital games, that req. a download, and you putting the cartridge into the switch2, to be able to play it.
So its like buying digital, but with more steps. If you lose the cartridge or its damaged, the digital game you have installed wont play.
This also means, every time you boot up the game, it checks if your cartridge is in there, and the code matches, what its supposed too at some online data base.

What happens 20 years from now, when Nintendo pulls down servers for say the Switch2 ?
You can't install games anymore, even if you own the gamekey cartridge.
Even if you have it installed, you likely won't be able to launch the games anymore either.
(unless they offer patches to every game, before shutting down servers, that remove it)

This seems like a bad thing for physical collectors.
For ease of use, that digital only guys like, it has the extra steps of req. you to carry around cartridges.
Like why arn't these just digital only games instead? Save the waste of plastic pollution.