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brute said:

I would also say that "gifting" a game is much different than gifting music or movies which will continue to drive physical sales.

When parents buy their kids games for their birthdays or holidays or whatever special event they tend to mostly buy physical, as it brings greater joy when a kid opens the package and sees the game case there.

And the whole switching discs to play a different game isnt as inconvenient with Switch as other consoles. Switch games barely have an install and switching the cards takes a few seconds at best.

True that's why they sell fortnite games in stores that just comes with a digital code.