Interesting point about PC going digital-only as Nintendo is a fascinating counter-example.
While they offer digital downloads on the eShop, their pricing actively discourages it.
Case in point: I just bought my kid a new first-party Switch game. Physical copy on Amazon was ~25% cheaper than the identical digital version on Nintendo's own eShop. Even my 9-year-old noted how illogical it seems, the physical version requires manufacturing, shipping, retail markup, yet costs significantly less than the digital bits that have near-zero marginal cost.
It strongly suggests Nintendo wants the physical retail channel to thrive, or values the perceived permanence/resale value of cartridges.
This context makes the Switch 2 "gamekey" cartridges (physical auth token, digital download) fit their pattern of valuing a physical artifact and retail presence, even if the data delivery shifts.
And physical, at least to date, retains resell value as well. If you want to play an expensive Nintendo release that effectively never goes down in retail value, it's reasonably safe to buy it, play it, and resell it if you don't want it indefinitely. Nintendo never lowering their prices helps anchor the value high even in the resell market most of the time.
I haven't read enough about this to know if the gamekey will kill this but it's certainly only a matter of time before they are all coded and bindable to only one account. Technically this has obviously been possible for a long time, they just haven't dared to pull that trigger yet. They clearly want to.
> And physical, at least to date, retains resell value as well.
That stopping being true as soon as the DS line started and they switched to flash memory that will degrade over time when they don't have power. People's DS games are already failing. The same will happen to switch games. Only a few hardcore collectors are going to pay money for a cartridge that doesn't let you play the game anymore.
That's more like antique value. Resell as meant here occurs within the first few months to maybe years after a game releases. Degradation that happens on a time scale of a decade or more will not be a significant issue for ordinary resale.
I believe it’s to ensure retailers want to sell the games.
When I go to virgin mega store, there’s a large section of Nintendo games, but nothing for any PC games.
If it was cheaper to buy online, why would I buy physically, unless I was really into it physical media.
And that segment isn’t big enough to cause retailers to put up a section in the mall, which not only works as a point of sale but also as a giant advertising banner.
Price discrimination. Digital is more convenient to the consumer, hence by nature they prefer it. Consumers who are more price sensitive can instead choose to put up with the inconvenience of a physical purchase in exchange for a cheaper price.
Nintendo has raised the physical prices for Switch 2 games more than the digital edition. E.g. Mario Kart physical will cost 90USD/EUR and digitally 80USD/EUR. Thus, their retail-friendliness has diminished with the new generation.
While they offer digital downloads on the eShop, their pricing actively discourages it.
Case in point: I just bought my kid a new first-party Switch game. Physical copy on Amazon was ~25% cheaper than the identical digital version on Nintendo's own eShop. Even my 9-year-old noted how illogical it seems, the physical version requires manufacturing, shipping, retail markup, yet costs significantly less than the digital bits that have near-zero marginal cost.
It strongly suggests Nintendo wants the physical retail channel to thrive, or values the perceived permanence/resale value of cartridges.
This context makes the Switch 2 "gamekey" cartridges (physical auth token, digital download) fit their pattern of valuing a physical artifact and retail presence, even if the data delivery shifts.