RolStoppable said:
Soundwave said:
That still makes no sense for the publisher.Â
Packaging + shipping + retailer cut is still going to be about $15 dollars, then the cartridge itself while far cheaper than the N64 days is still likely at least about $7 or $8 a pop. Digital is simply better for everyone.Â
Nintendo basically knows this too, the Game Key Card option is there because they basically expect all/most 3rd parties to just use that option.Â
3rd party games being sold on Nintendo platforms digitally = more money for Nintendo at a 30% cut. Of course they will want that too. That's another reason for Nintendo to want better 3rd party relations in general too in the digital age not only do they get their standard licensing fee cut, they take what Wal-Mart/Game Stop/Target/Best Buy etc. would take as their cut too. That's great for Nintendo and easy money.Â
Honestly Nintendo should have just ditched physical entirely and gotten this whole process over with, the current setup is a bit silly and stupid for all parties involved. There's not going to be very many Switch 2 games on an actual cartridge, almost all the 3rd party ones will be on a Game Key Card.Â
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I don't think your maths holds up when Marvelous are shipping their games on game cards.
The game-key card probably exists because Nintendo was aware of how many fake physical games there were on Switch. What a game-key card does is turn a digital game into something with actual ownership, meaning that a game-key card can be sold by consumers if they don't like it, unlike digital games which cannot be resold. Nintendo cannot force publishers to make physical games, but the game-key card at least provides more rights to Nintendo's customers. Or in other words, the absence of game-key cards wouldn't have increased the amount of physical games but the amount of codes in a box.
I am sure that Nintendo knows that aiming for the highest volume of games sold is more profitable than aiming for the highest margin per game sold. That's why Nintendo keeps publishing physical games, because they know that their game sales and thus their profits would decrease significantly by going digital-only. The proportion of physical game sales for games that are available in both physical and digital format still accounted for ~70% late in Switch's lifecycle. Your suggestion that Nintendo should gone digital-only with Switch 2 is plain stupid.
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The math holds up fine when 90%+ of the third party games on the Switch 2 are going to be Game Key cards, that already tells you all you need to know. The total Switch 2 physical library is going to be overwhelmingly a bunch of Key Cards, then you'll have the Nintendo published games and that's about it. Only a few 3rd parties are going to bother with putting their game on a cart, and they're not evil or bad for doing that. It just makes sense.
The Key Card exists because 3rd party publishers don't want to pay the damn $8-$10 for the cartridge and they're correct in not wanting that. In 2025 when game budgets are skyrocketing, you can't expect publishers to subsidize even $8 a copy ... that money is important to their bottom line. Key Cards let Nintendo still have a physical presence. Even Nintendo themselves is not willing to subsidize the cost for physical, we're seeing physical games have a $10+ premium over digital Nintendo software. You want the cart? Well then you can pay $70-$80 a game for Nintendo games, that's just how it's gonna be.
Digital is more profitable, even Nintendo knows that. A 30% cut from 3rd party sales for example would net Nintendo billions of dollars of extra revenue on software just from 3rd party fees alone quite probably for the course of a generation. That's a huge windfall for Nintendo and Sony to be able to not only get their standard licensing fee but another fat chunk of revenue for essentially doing nothing? That's fantastic margin expansion, every business lives for that.
Nintendo has long relationships with retail in Japan that's the main reason they are sticking with having a foothold in physical, but it will diminish as time goes on and the fact if Nintendo is going to cry about a digital future, they'll be crying all the way to the bank.
Playstation 6 and Switch 3 (and whatever the next XBox is if it even releases) will be digital only and both Sony and Nintendo will make more money in the long run that way. Switch 2 is probably the last major console that will support physical media and it will be kinda shitty support frankly. A ton of Game Key cards and Nintendo physical games with a mark up. So for those who really are all about that, enjoy it while it lasts (and also enjoy paying $10 more per game in many cases). GameStop probably won't even exist past 5 years, it'll be a minor miracle if they can make it that far. The writing is on the wall and there's no huge incentive for Nintendo or Sony to want a physical/digital mix, they again stand to make more money in a digital only future.
Physical had its time, at this point it's just becoming a farce. Like what? Cyberpunk and like 2 other games are slated to be physical releases on the cartridge itself? And the Nintendo ones are like $70-$80 a pop for physical? The writing is on the wall here.
Last edited by Soundwave - on 11 May 2025