Eventually, it will be the case. The main consoles are definitely going to become obsolete. Remember the whole reason why people prefer consoles is because it's cheaper and easier to use than PC gaming. Streaming does a better job than consoles at both of those categories.
Eventually could be 20-30 years from now. If you think we are anywhere close to the end of movie theaters, you're out of tune with the current climate.
As for physical media, it's going to take a long time before that is no longer produced as well.