Few scenarios
1) Pub uses larger more expensive cart, games has to cost more. Switch owners pissed off
2) Pub uses smaller cart, mandatory day 1 download. Price parity. Switch owners pissed off.
3) Pub uses larger more expensive cart, price game same as other versions. Switch owners happy, investors and Financial Director pissed off.
4) Pub goes digital only for switch, price parity across versions, loses retail presence of game, sells below expectations. Combination of pissed off switch owners who want physical and pissed off investors who see this and switch as a flop.
In this scenario the Financial Director and Investors still make profits. Its an everybody wins scenario. This policy is just a publisher being greedy for what doesnt amount to a huge amount of money.