On how games designed for people to play in short bursts tend to do better as digital sales than physical ones…

“Let me put it this way. As we look at our software business, I find it startling, but once you think about it, not surprising that the digital mix of software is different game-by-game-by-game.”

“Consumers want to have it, they don’t want to be swapping out cards. Conversely, games like Smash Bros. 3DS, a game where consumers invest a lot of time mastering move sets and really becoming an expert with a particular character. While it would never happen, the consumer is afraid they’re going to lose the data and so it’s in a physical form because they feel more secure having the card.”

“I do think that consumers find a sense of security in having the physical thing, and given that, I think the option of the physical thing always needs to be there. How that manifests itself in our future development we’ll see. But it is an observation based on sales whether it’s on our 3DS or Wii U, the wide range of digital sales is pretty striking.”

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I think the most telling quote here is this:

“I do think that consumers find a sense of security in having the physical thing, and given that, I think the option of the physical thing always needs to be there. How that manifests itself in our future development we’ll see."

It's strange how he words it as a "physical thing" instead of just carts or discs. It's strange how he makes the future of that "physical thing" is left to be a mystery when the status quo has been carts and discs since gaming began.

I predicted in my NXDS prediction thread that the next NXDS would be 100% digital and might use something like NFC cards to give fans of physical media something to physically own:

(http://gamrconnect.vgchartz.com/thread.php?id=197574&page=1)

This seems to hint at something like that.

Pure speculation, though. Definitely not conclusive. Thoughts?

This kinda contradicts what you predicted though.

Nintendo won't go for an only digital ecosystem in any of their machines. They already have enough problems to anger their userbase with that. The most they'll do is a machine like the PSP Go. But for that Nintendo needs two things:

-A console that is significantly cheaper than the regular version. If the console is 150€, the digital only would need to be 100-90€.
-A subscription based system to aliviate the prices on digital. And no putting the multiplayer under a paywall.

Yeah thats pretty striking.  I don't think the NX is a physical thing.  There I said it.  In the future the NX platform is a digital servidce you play  on PlayStation 4 and your save files (or rather your pypsical attachment1) is the Amiibos that you use to save your progress. 

Only digital systems will not happen next gen.

It's kinda suicide, too.

Reading through OP my first thought was Amiibo as game keys?

I don't really think that would happen though. Reggie shows at least a basic understanding of why people buy physical. It's not just about collecting stuff and having a glorious shelf to show off. They're afaid of data-loss, of actually loosing their game and not being able to play it anymore. Physical is safer because it wont just vanish off the face of the earth if a publisher says so (looking at you konami). His quote implies that he understands that. So an actual physical NFC key to a digital game is not very likely IMO since it would accomplish nothing to relieve those concerns. It's literally just a collectors Item.

But what if the whole system was digital?

In your dreams.

Ew, no thanks.