I prefer physical over digital. Most of the time I will buy physical if it's convenient enough for me. I'm rather impulsive, so there are plenty of occasions where it's late at night and I decide I want a game. In those cases, I have no problem going digital. Depending on the game system, file size may also play a factor in my decision.
Going on a bit of a tangent, but one of my PS3s only has 12 GB of space (no joke), and there are some games (even the physical versions which require large installs) that cannot be played on that system at all.
When buying digital, the platform matters as well. Steam isn't going anywhere anytime soon, so I know that the games I purchase will be available for the foreseeable future (but who knows, really). This is where Nintendo consoles are lacking, as game purchases don't seem like they will last forever. When I buy a digital game on the eShop, it doesn't feel as though the game is mine.
Another thing I want to point out is that there are certain games (like Mario & Zelda) that I am more inclined to buy a physical copy for. I like having physical copies of my AAA Nintendo games, while indie games lend themselves well to being digital (price, file size, maybe no physical version even present).
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