Link: https://nintendoeverything.com/nintendo-policy-reportedly-prevents-switch-2-game-key-card-to-be-reprinted-as-full-cartridge-version/

VGP wrote on social media about Nintendo’s game-key card policy:

“When it comes to game-key cards, all the publishers know exactly where VGP stands. Unfortunately, we don’t see much changing with most of the bigger publishers. As we’ve stated many times, we’d actively try to get existing game-key card titles reprinted as full-on-cart versions, but at the moment, there’s a Nintendo policy preventing that. That said, we’ll keep pushing, keep asking questions, and keep annoying them.”

Unfortunately, VGP didn’t share any information beyond what we’ve posted above.

I have to imagine it's to prevent consumer confusion. To the average consumer the two look the same, and it could be confusing if a shop is selling "Game [Physical]" and "Game [Game-Key Card]" (and "Game [Digital]"). Nintendo just wants Physical and Digital.

That being said it's a policy and one that I think they should change. Or better yet sunset Game-Key card, and just have physical or digital.