Can somebody breakdown the $60 price tag for a game and explain why in most cases physical copies are the same price as digital ones?

[Conina]

Goatseye said:

And why does the price of games tend to stay higher in digital form for longer than physical form?

Fewer competition. If you want the digital version of an xbox-, playstation- or nintendo-game, your ONLY option is XBL, PSN or eShop.

Digital shops for PC-versions have a steep competition (Steam, Origin, Desura, GOG, GamersGate, GreenManGaming, McGame, Humble Bundle, Amazon Downloads...), hence much more and better bargains.

Retailers have a steep competition AND high storage costs.