Nintendo has reported that physical game sales still constitute 38.5% of its total software revenue, indicating a continued commitment to the disc and cartridge format. This figure positions Nintendo distinctly apart from many industry peers, including Sony, which plans to cease releasing new PlayStation 5 games on disc from January 2028.
While this physical share has decreased by 2.2 percentage points, it remains a substantial portion of Nintendo's sales. In contrast, Capcom recently stated that approximately 90% of its game sales are digital. This difference is attributed, in part, to Nintendo's broad audience, which includes younger and more casual players who may prefer physical copies for sharing, resale, or collection purposes. Die-hard fans also contribute to this trend by valuing physical collections.
As the Nintendo Switch 2 enters its market, the company appears unlikely to abandon physical media in the immediate future. Nintendo has adopted a hybrid distribution model, offering games on traditional cartridges, Game-Key Cards, and digital codes packaged in boxes. This approach is exemplified by the reported distribution method for the Switch 2 version of Diablo 4.
However, Nintendo is also subtly encouraging digital adoption. New Switch 2 games are reportedly being priced around $10 cheaper than their physical counterparts. This strategy suggests a gradual shift towards digital downloads while still catering to the existing demand for physical products.
Looking ahead, Nintendo has several notable titles slated for release. The Switch 2 is expected to receive Fire Emblem: Fortune's Weave on September 17, Switch Sports Resort on October 22, and a remake of The Legend of Zelda: Ocarina of Time before the end of the year. Further into 2027, Xenoblade Genesis and new Pokémon titles, Pokémon Winds and Pokémon Waves, are already announced.