I'd like to start by saying that while the popularity of physical games hasn't decreased by a lot, the popularity of digital games is definitely much higher and i want to list some points as to why i think there won't be physical games anymore in the 10th generation of consoles.
- A massive decline in brick and mortar game shopping: people just don't like going out if there's more convenient ways to shop.
- Increasing internet speeds: rising internet download speeds make people more comfortable with the idea of downloading digital games.
- Increase in services providing easy access to digital games: services like Xbox Gamepass that provide cheap and simple access to games or cloud streaming offerings like PlayStation Now that let you play without the digital game downside of having to be download the games make consumers prefer digital goods.
- Incentives to buy digital: Both Microsoft and Nintendo offer 'points' for purchasing digital goods, with Nintendo giving them too for physical games but to a much lesser rate than digital. I doubt a lot of people actually purchase digitally because of this but its definitely there.
- Generous sales: Microsoft, Sony and Nintendo (when the galaxies align) tend to offer massive sales in digital games periodically and give extra discounts as part of their subscription services, making gamers consider buying the cheaper digital games.
- Digital exclusives: a small one here, aside from games that are simply only available digitally, i wanted to talk about games with physical releases and their tendency to have "Digital Deluxe editions", making some decide to purchase digitally in certain occasions.
- Attention from the overlords: Microsoft and Sony both saw the demand for cheaper consoles and the rise in consumption of digital products and decided to offer all-digital hardware on day one, and without counting scalpers, it shows that many people don't care about physical games based on how many people actually chose these consoles, because we can't really depend on sales numbers.
And those are my points as to why i'm doubtful physical games will survive, especially considering how console generations tend to last for around 7 years and how quickly technology evolves and people adapt to it.
Bonus 1 – PC doesn't have physical games (aside from [INSERT EXCEPTION HERE]) and PCMR is always right, right?.
Bonus 2 – Drinking game: take a shot everytime you see the words 'digital' or 'physical'.