I was just hearing about the physical version of Wolfenstein: Youngblood coming later this year. The game is getting a release on PS4/XB1 and Switch but the Switch version is just a download code in a box - the other versions will contain a Blu Ray. At this stage I have been unable to find out what the file size of the game is but a size bigger than 16GB is certainly possible.
Here is the link -
So why not go digital only for Switch? Because devs want a physical presence in stores, they want retail exposure for their games and this physical version allows them to garner the sales that make it worth porting the game to the Switch in the first place. The 16GB physical limitation that currently exists for Switch IMO is directly affecting what games are announced for the system because if a game is >16GB then it's digital only and that reduces sales for that title. This in turn reduces the games coming out for the system which then affects the overall sales of the console. The Switch is great, but it could be better if Nintendo sorted out that issue and if that means taking a small hit per card and offering devs a 32GB card for the same price as the 4/8/16GB card it would be great for the system as a whole.
Let's face it, Nintendo imposed this proprietary format and could certainly afford to subsidize it, especially when they offer a paltry 32GB internal memory on the console itself.