The Switch 2’s Game-Key Cards, which store a digital license for downloading a game instead of the software itself, have been the target of much criticism ever since Nintendo first announced them. With consumers feeling more strongly about the need for physical media and game preservation than ever, it doesn’t come as a surprise that recent decisions by Nintendo have been controversial. However, composer and former Capcom developer Masakazu Sugimori recently stood in Nintendo’s defense, suggesting that a lot of what the company is doing is in fact meant to “protect the game and digital entertainment industries as a whole.”
In an X post from September 9, Sugimori says that one point of criticism he considers legitimate when it comes to Game-Key Cards is they can ultimately lead to a game you rightfully purchased becoming unplayable at the publisher’s discretion. At the same time, he flips the argument over, commenting, “But can non-digital goods be used forever? For the most part, no. Physical things have a lifespan, and they eventually break. Digital goods, on the other hand, don’t have a lifespan.”

This lack of a natural lifespan is, in Sugimori’s opinion, a key factor behind what Nintendo is doing. He offers a breakdown of his reasoning for the company’s recent decisions, including key cards and price hikes (i.e. Mario Kart World’s controversial $80 USD price tag).
Key cards: Preventing piracy, reducing the risk of carrying unsold stock
Raising game prices: Amidst rising costs, Nintendo took the lead in raising prices so other struggling game companies could follow
Cutting online services for past hardware: This sets a ‘lifespan.’ By doing this, it becomes easier for each game company to re-release their games on new hardware. In other words, it creates the job of “porting.”
While acknowledging that his interpretation may be a bit idealistic, Sugimori is, in principle, sympathetic to Nintendo. He considers it very unlikely that Nintendo is acting out of greed, given the company’s “insane” cash reserves. Instead, he suggests Nintendo is, in its own way, acting to protect the games industry. “With Nintendo taking the lead, it becomes easier for other companies to follow suit and protect themselves, that’s a fact.”
Related article: Nintendo Switch 2 game-key cards not eligible for preservation by Japan’s National Diet Library, officials say