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One of the more controversial announcements surrounding the Nintendo Switch 2 was the unveiling of Game Key cartridges, which are physical game cartridges that don't contain any data of the respective game, just a key for a player to unlock and download it once it's plugged into the system.
Game Key cartridges are essentially physical access codes to digitally unlocked game, which, for collectors of physical copies of games, is an antithesis, and to those who enjoy the simplicity of plugging in a game cartridge to dodge what could be a nasty download time, a prudent annoyance, especially if the game they are after isn't getting a physical cartridge release. Well, now we may have an explanation as to why Game Key cartridges even exist in the first place, and according to one source, Nintendo could be to blame.
Physical Paradise recently posted a video where he said he has heard from a source that Nintendo is giving fewer cartridge options to publishing partners, with there only being a "smallish cartridge, or a full-fat 64GB cartridge, and nothing really in between". Why does this matter? It doesn't for the bigger games that will use most of that 64GB capacity, or the really small games that are only a couple of gigabytes. It only matters for the games in the middle, possibly between 16GB and 64 GB.

Publishers of these games will be faced with a decision: reduce the game's graphics/scope to fit on the smaller cartridge, or purchase the more expensive 64GB cartridge and possibly only use half of the total capacity, essentially wasting money. The alternative? Don't have a physical release and go the Game Key route, saving the publisher a lot of money.
Nintendo reportedly only having a few options for publishers to choose from incentivizes publishers to go down the Game Key route.

Notably, Physical Paradise does say that while he trusts the source he heard this information from, there is still a chance that it might not be true, as the information has been passed down "four levels" before it has now reached the public. With that being said, take this information with a healthy amount of skepticism.
As for what is confirmed about the Nintendo Switch 2, a recent report from Bloomberg revealed Nintendo has shipped more Nintendo Switch 2 units to the United States from Vietnam in February than it has in the past six months combined. If you are interested in reading more about that story, or would like to know why the Piranha Plant camera is cheaper than the official Nintendo Switch 2 camera, check out the links below.