Nintendo sells digital copies of retail games at the same price (full price) while saving in packaging, printed materials and the cart itself using, at the same time, resources you spent money to get, name it your SD Card
Digital barely have real offers, like the Beat Buy one where you could find the Professor Layton Game for $ 15.00,
While it's true there are fewer sales for digital games, the first point is not totally accurate. For the first point they don't have the cost of packaging and retailers taking their cut, but they do have the costs of servers and bandwidth. Keep in mind they for the most part have to pay for the server forever, whereas they can stop printing physical games when it stops selling.
I don't know all the cost break downs of the two forms of distribution but digital does have costs associated with it that physical doesn't. So a blanket "they don't pay for x" doesn't work since instead they're paying for Y.
PRO: don't need to switch games, but REGISTER ALL YOUR GAMES on club nintendo so if you're system breaks, gets lost, stolen etc you call nintendo and get them to transfer it to a new 3DS don't have to switch cartridges to check streetpasses.
CON: you can't share digital downloads, my brother and I have our own 3DSs but don't wanna buy each game twice. can't sell them when you're done with them. --- 3DS FC: 4098 - 2370 - 5638 looking for 3DS friends (Swapnote, MK7, Code of Princess) PSN: RocketZXblue Steam: RocketZX