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vivster said:

Storage is a non issue, really. Nobody, no matter how much they pretend they do, needs to have 20 games simultaneously installed, especially not games that are 50GB. Games can be downloaded and uninstalled easily and quickly. Storage is a comfort that everyone wants but very few actually need.

If people can do without a headphone jack, they can easily do without having unlimited storage. In the end convenience will always win out and having 10 games locally installed will always be more convenient than lugging 20 cartridges around and sometimes having to download a game.

If anything the increased demand of storage will drive developers to do even less physical. The physical mediums are way more limited than local storage.

Well, I don't know where you came from, but download a 86 GB game like FF VII is definitely not fast neither convenient. I actually don't see how having to download and uninstall a group of games over and over is more convenient than just changing the cartridges when you want to play something, unless you're using a portable so maybe it makes sense that you don't want to walk with many copies indeed. I googled some reasons why people still buying physicals and I find this article, It was a easy but interesting reading: https://www.gamesindustry.biz/articles/2018-09-14-why-do-gamers-still-buy-physical-games

- 32% buys because they like the collection, these people will probably never changing their minds and will always side with physicals (even if they buy digitals, they will choose physicals when this option is viable)

- 31% buy because it was cheaper (either because it was a discount, or because it was a second-hand game). These people are very likely to buy digital if digital is cheaper

- 42% buys because they like to play in other console, OR like to lend it to someone, OR because they like to resell. So it's a consumer habit, and it's not likely to change 

- Only 22% buys due to technical limitations like internet or storage

So you might be right, only a few (one out of five) european costumers will go for physical thanks to technical limitations. However, this only make physicals appeal stronger imo, you can have few workarounds for the 22% and make digital cheaper for the 31%, but the there is a huge chunk of people who doesn't care for this. I like the idea of borrowing my games, that's why I like Steam, it would be nice if I could do the same with my Switch games.