Physical games are over, people just need to get over it. Nintendo honestly shouldn't even be offering this, physical games on a portable platform is stupid at this point. PS6 will not have physical games, neither will whatever the next XBox (PC in a box) is.
Nintendo is just stuck catering to this shrinking market because some parents must have a physical copy of a game for birthday/holiday gifts and Japan being a "trade in your game after a week" culture, but ultimately that's not going to sustain physical games and people are going to have to move on.
The economics just don't make sense. This is NOT an N64 type situation, the people trying to push that have no clue what they're talking about but even at a modest cost, it just doesn't make sense economically.
A 64MB cartridge likely still costs in the range of $6-$10 a pop, then you have the cost of packaging + shipping (lets say another $4-$5/copy there) and then the retailer takes their own cut ... that's $8-$10 there ... physical games can end up costing $15-$20+ per copy over a digital sale for a publisher. That means really a physical game should cost at least $15 more than a digital version of the game.
The 64GB only thing is likely Nintendo made a deal with the supplier and having one line of 64GB cards in the long run is the cheapest option, Nintendo doesn't want all these other sizes as the production numbers on physical cartridges is supposed to be small. The message is pretty clear that especially for 3rd party games, Nintendo just expects them to use the GameKey option most of the time.
The format the game is on isn't important, the game is. I sure as fuck wished during the freaking N64 era when I was dying from huge game droughts that we had the option for digital downloads + onboard system storage then. Being able to download even 250MB max games would've been a godsend and made the N64 a far, far better system.







