Are physical games really dying? Here’s how much Nintendo makes from cartridges

Sony plans to phase out physical games by early 2028, citing significantly greater demand for digital content. Nintendo’s latest financial figures, however, show that physical games are far from obsolete – at least when it comes to cartridges for the Nintendo Switch and Switch 2 (currently $612 on Amazon). According to the figures, Nintendo generated 61.5% of its software revenue digitally in the quarter ending June 30, 2026. Conversely, physical games accounted for 38.5%.

Importantly, these figures represent revenue shares, not unit sales. The digital share also includes DLC, download-only games, Switch 2 upgrades and Nintendo Switch Online subscriptions – in other words, content for which buyers do not have the option of choosing between a digital and physical version.

Nintendo reports revenue of 84 billion yen from download versions of games that also received regular retail releases. Based on the stated revenue share of digital games, revenue from physical games can be estimated at around 83 billion yen. This means the two distribution channels could be nearly neck and neck in terms of revenue – although Nintendo does not disclose how sales of individual games are split between downloads and cartridges.

On Reddit, users are hardly surprised that physical games apparently remain popular among Nintendo players. Reasons cited include resale value, collectibility and the ability to lend or give games to others. While it is not possible to clearly verify exactly how revenue from titles available both digitally and physically is divided between the two distribution formats, an imminent end to cartridges at Nintendo appears unlikely given these figures.