The Switch 2's "Game-Key Cards" have been criticized since they were announced. This kind of card does not directly store the game software itself, but saves a digital license for players to download the game. With consumer demand for physical media and game preservation stronger than ever, it's no surprise that Nintendo's recent decisions have been controversial.
However, composer and former Capcom developer Masakazu Sugimori recently publicly defended Nintendo, believing that many of Nintendo's practices are actually to "protect the entire gaming and digital entertainment industry."
In a tweet on September 9, Sugimori argued that a legitimate criticism of "game key cards" is that they can eventually cause a game you legally purchased to become unplayable due to the publisher's decision, but he also asked: "Do non-digital items really last forever? Most cases don't. Physical items have a lifespan and they will break sooner or later; digital items do not have a lifespan."
In his view, this "no natural lifespan" feature is the key to Nintendo's logic. He further explained his understanding of some of Nintendo's recent moves, including key cards and price increases (including the controversial $80 price of Mario Kart: World):
Keycards: Prevent piracy and reduce the risk of unsaleable inventory
Game price increases: Against the background of rising costs, Nintendo took the lead in raising prices, allowing other manufacturers in difficulty to follow suit.
Cut off the online service of old hardware: artificially set the "life". This makes it easier for manufacturers to re-port games to new hardware, in other words, it creates the job of "porting"
Sugimori admits that his interpretation may be somewhat idealistic, but he sympathizes with Nintendo in principle. He doesn't think Nintendo is motivated by greed, as the company's cash reserves are "insanely" large. Instead, he feels that Nintendo is protecting the gaming industry in its own way. "When Nintendo takes the lead, it becomes easier for other companies to follow and protect themselves, that's a fact."