Nintendo

I think it's because people expect that when they opt to buy a game on a physical cartridge, they expect the game to be on the cartridge. With compromises, maybe, but fully on-cartridge.

It's a reasonable replacement/alternative for "code in a box" games.

The problem is that it's effectively replacing physical games on the Switch 2 - so far we have 80%+ of 3rd Party releases are using this model, and it's a significant downgrade for "true" physical - forces the customer to pay the "storage cost", requires internet access to install the game (not great from a handheld that should work everywhere), is bad for preservation since the game is not on cart.

Also, despite this being a low-cost alternative to carts some publishers are being extra-scummy and INCREASING the price - the Switch 2 version of Trails Beyond the Horizon is a good example, being $10 more than PS4/PS5/Switch 1 despite being effectively an "empty" cart.

The concern is that several publishers that did true physical releases last generation are now doing Game Key Cards this generation. When these were first announced, I assumed these were just an alternative to code-in-a-box, and marginally less terrible, but now it seems like these are actually replacing true physicals.

Basically, but there are some differences. It's more like a physical key to a digital game, rather than a one-time unlock code.

GKC:

• No data on card, requires internet & Nintendo service first use
• Installs to storage, taking up space
• Requires card inserted into system to play
• Box is an artifact to display on store and home shelves
• Freely re-sell or buy used

Full physical:

• All data on card, no internet dependence
• Only requires enough space for a save game
  • (Unless you download patches and updates, but still takes less storage)
• Requires card inserted into system to play
• Box is an artifact to display on store and home shelves
• Freely re-sell or buy used

Full digital:

• Internet & Nintendo service required to purchase.
  • Long term, store front will likely go down much earlier than re-download servers
• Installs to storage, taking up space
• No need to put card in system, play any digital game installed at any time
• Retail presence is limited to codes, either printed on cardboard or code-in-a-box
• No need to store any artifacts, saving valuable space in your home
• Unable to re-sell or buy used.

So, it's just a slightly different mix of pros and cons. Gotta pick which things you care about.

I can't understand it either.

I'd consider the digit key cards as a physical cartridge requiring a huge first-day patch (as large as a full game).

Okay, I guess some of the anger comes from the limited storage of console and the high price of fast SD card