Oh, you know the profit made from Outriders? Also how much money Squeenix is getting for putting it on GamePass? Please share.
As for the OP, aren't most game sales digital already nowadays? You need more info to make any sort of compelling argument.
1. How many physical sales there were
Also retailers really don't make much money on software sales, they make them on accessories and in most game retailers case, used games. That's why if you go into a US GameStop store nowadays it's probably 40% games and 60% accessories and overpriced pop culture trash.
For every $60 game sold, The publisher (Square Enix) makes about $28-30 bucks (physical game) and much more by selling it digitally.
So, if for example, let’s say, the total retail sales ATM WW for this game are 1 million, and the ratio remains the same compared to UK.
830K copies are on PS consoles and 170K on Xbox consoles.
That means that the publisher gets about $23.4 millions from PS consoles and about $4.76 millions from Xbox consoles.
How much do you reckon MS paid for having it day one on Gamepass? $1 million, 3 millions, 5 millions, 10 millions??
Also, The retailer (GameStop, Walmart, BB, etc) makes about 25% of the price or $15, so yes they are making some money by selling physical software.