Not completely since there will always be a portion of gamers into collecting physical games for retro systems but the portion of gamers into physical in general is shrinking to the extent that it's gonna mostly go away at some point. I do think it's likely that the average console gamer will view physical games the same way the average PC gamer does in 10-15 years so even if gen 10 consoles have a disc drive it should be the last gen that offers that option though it won't matter that much if they do since big games being digital only will probably be common by then. Alan Wake 2 is gonna be the start of a trend I imagine.
Physical video games are in an awful situation where the market is completely at the mercy of what just three companies decide to do. If all three decide to not bother with it any more when it becomes a small enough slice of the market then it'll be completely dead outside of collecting for old consoles. Nintendo will probably stick with it the longest but that would still mean tons of popular game series don't get physical releases any more. Cause of this I expect that the physical market for film is gonna have modern releases for longer than video games.
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