

A free update is also coming to the Animal Crossing: New Horizons game for the Nintendo Switch console on 15 January. This update features a new resort hotel run by Kapp’n’s family, new themed items and characters, extra exclusives like Slumber Island for Nintendo Switch Online members and more.
https://www.nintendo.com/my/news/article/4VuOPmL0ykNQRZGDz8dMEV


So the only way they make sense is if they replace the simple code some collectors edition have, since you can’t then sell the physical game that you bought.
For all other cases, it’s a downgrade.