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curl-6 said:

This has actually been a thing on PS/Xbox for quite a while, discs that just contain a download code essentially.

It only really blew up in terms of controversy on Switch 2 cos they gave it a name and were open about it.

It blew up on Switch 2 because MOST "physical" games don't have the data stored in the cart/disc. This is exacerbated by Nintendo gamers being more physical biased, and Switch 2's storage being too small.

Microsoft received notably more criticism than Sony for having more Xbox games not being stored in the disc. And now Nintendo is getting a lot more criticism than either of them for obvious and uncomplicated reasons.