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CaptainExplosion said:

Game Key Cards were a mistake. Why not put the damn game on an actual Switch 2 cartridge?

They're a necessary evil because Nintendo chose a very expensive physical format. Many publishers would likely have gone code-in-box or digital only with switch 2 if key cards didn't exist.

Nintendo charged publishers $15 for a 64GB cart compared to a 100GB BDXL Blu-ray being more like $2.

Because of the nand price crisis those 64GB carts probably cost Nintendo at least $20 to make now, so Nintendo may infact be losing money selling them to third parties if they haven't changed how much they charge them.

A slower cheaper physical storage that had mandatory installs would have been the better play to get releases with the data on cart/disc.