Nintendo introducing Virtual Game Cards to change how sharing digital Switch games work

During last night’s Nintendo Direct, we got something completely unexpected—a major overhaul of how digital games can be shared between Nintendo Switch consoles. This will also apply to the Nintendo Switch 2.
Nintendo has introduced “Virtual Game Cards,” which, in some ways, don’t change much, but in others, significantly alter how digital games are managed on a Nintendo Switch. When you purchase a digital game, it now becomes a Virtual Game Card. Just like you can share a physical Game Card with your other Switch consoles, you’ll now be able to lend out your digital games to others in a family group for up to two weeks.
Currently, if you have two Nintendo Switch consoles and the same account on both, only the primary Switch can play games offline. The second Switch needs to be online to authenticate ownership. With this new system, that will no longer be necessary. You only need to have an internet connection when you lend out the game (or “ejecting it” to return it).
Family sharing is also being revamped. Right now, you need to share your account details for someone else to play games you own, even if they’re in the same family group. With this new method, that won’t be required anymore—though the original method will remain an option for those who prefer it.
From Nintendo’s website:
If you turn on “User Settings” → “Online License Settings”, you can also play with the conventional method of connecting to the Internet and starting the software.
It might not seem like a massive change, but if you’ve ever tried to own two Switch consoles and easily play digital games between them, it’s never been easy. You can now also share games more easily among family members without the same issues.
Virtual Game Cards are coming to the Nintendo Switch in a system update in April and will be available on the Nintendo Switch 2 when it launches as well.
Virtual Game Card: Introducing the virtual game card – a new feature for easily managing purchased digital games, playing games on two different systems, and even lending or borrowing games. Similar in concept to moving physical game cards between systems, virtual game cards make it possible to “eject” a purchased digital title from one Nintendo Switch system and “load” it onto another – whether it belongs to a member of the same Nintendo Account family group, or a second system tied to your account. This optional feature allows you to view virtual game cards or eject them from your system. The digital game can also be lent to a Nintendo Account family group member’s system via local wireless connection. Games that you lend can then be played on a Nintendo Account family group member’s system for two weeks, after which the game will be automatically returned to you. This feature will be available on Nintendo Switch starting late April via a hardware system update. Additionally, virtual game cards will also work with Nintendo Switch 2 systems at launch.