3rd party software sales aren't as bad as it seems when digital is accounted for. PC is a big platform in Japan now, it's safe to say that some games sell about as well on it as they do on Playstation.
Also the survey (30k voters) estimates below sound about right, give or take 5%:
I get this question a lot, and while I can't give a full answer, there's at least some info available.
On the most recent CESA white paper, they held a poll to see what the retail/digital split was, and for 2022 they had
Overall 30%
PS5: 35%
PS4 50%
SWI 23% https://t.co/cu3eZ9qYf2 pic.twitter.com/P9BUZpiRfX
— Game Data Library (@GameDataLibrary) October 5, 2023
PS4 having a higher digital ratio is a standard thing for older platforms. When Switch gets replaced, its digital ratios will also gradually climb. PS5 is behind PS4 here despite the Digital Edition, but it's probably well ahead launch aligned (35%~ vs about 15% iirc).
Physical declines are misleading.