In contrast, Nintendo's idea to sell physical games that are essentially transferrable keys seems like a much smarter compromise.

Part of the appeal for the Switch and Switch 2 is the stability of their resale market. It's easier to pay for a new game when you know you can get 50% of your money back on the used market.

Sony wouldn’t see any benefit from switching to game key discs. Nintendo introduced them to save on manufacturing costs, but game key discs wouldn’t give Sony any additional market or reduce costs any; they’d only shrink the physical market further.

Except the same companies have shown (see: closure of the DS online storefront) it's still an issue, just 20 years delayed instead of 10. Sure, it's better, but it's not good. I'll still take it of course, but we need to pressure lawmakers to set up something more fair and stable.