Arstechnica: Physical console games are quickly becoming a relatively niche market

[Wman1996]

Xbox makes sense as the least because of the Series S and GamePass. Nintendo makes sense as still being the top for physical because of a few things.
1. A lot of Switch games (especially Nintendo titles) don't require downloads. With PS4 and Xbox One to the present, those console makers require mandatory installs even for physical games. Switch runs physical games off the Game Card in almost every case.
2. Nintendo has the largest audience of kids, at least as far as I'm aware. It's very common for kids to be gifted physical games for Christmas, other holidays, and their birthday.
3. Consumers likely have the least trust in Nintendo's account and game license management. Even as recently as the Wii U, they tied your digital game purchases to the console itself (not your account). If your console was bricked or other situations, there really wasn't a chance to download the games on another Wii U.

I just about never sell or trade my physical games, so that's a reason I've gone mostly digital on some platforms. Switch I go mostly physical since I don't tend to get digital-only games on Switch.