Nintendo's new Game-Key Card format for the Switch 2 has received mostly negative feedback from fans, as it requires a digital download, with many players believing that it is only used for cost reasons. However, a developer has stated that this is not the primary reason, as the cards also offer performance benefits.

The details:

Game-Key Cards are a new format for the Switch 2 that allows developers to physically distribute games without the game itself on the cartridge. Instead, the cartridge functions as a key, allowing players to download a digital version while still having the option to share and resell their copy in the future. The format has received primarily negative feedback, with many concerns raised about game preservation and ownership rights.
After CD PROJEKT RED was able to fit both Cyberpunk 2077 and its Phantom Liberty expansion on a traditional cartridge, Game-Key Cards are now widely regarded as a cheaper option. However, Star Wars Outlaws developer Rob Bantin has stated that cost was not a major consideration in Ubisoft's decision to use the format and that it was chosen because a standard cartridge "simply didn't give the performance we needed at the quality target we were going for."
Bantin explained that the game's Snowdrop engine "relies heavily on disk streaming for its open world environments," but that the cost of the format used was not brought up in discussions. He went on to say that a more traditional release might have been in the works had the Switch 2 arrived sooner, but as it was developed with storage for other platforms in mind, he believes "leadership made the right call."

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Star Wars Outlaws developer says Nintendo's Game-Key Cards are preferred due to performance, not costs