Nintendo: "No plans to ditch physical games"

[Jumpin]

I didn't think they would. It would be leaving a lot of money and free advertising on the table.

A big chunk of Nintendo's revenue comes from the consumer gifting market. Parents who are gifting to children look more at the monetary value and physical nature of the product, rather than any inherent value (and most of the time, children don't know any better, other than, 'I got a gift worth X amount! Therefore I won't throw tantrums!'

It also helps that their products are given high shelf visibility at brick and mortar locations. That's passive zero-cost advertising.

Another advantage is Nintendo's proprietary media (game cards) which they sell to third party publishers as a means to sell their more highly priced software → instant revenue for Nintendo.

There is also the adult collector niche, which I know has several people on this forum who partake. And Sony has basically just handed that market almost exclusively to Nintendo. Even anti-Nintendo people who don't want to bite the bullet on console gaming have been changing their views on Nintendo as a result of this.