Nintendo has no plans to use game-key cards for their titles

[TomaTito]

Tober said:

If console manufacturers go full digital they'll have the risk legislators deem their E-shops a monopoly and force them to allow other digital stores on their platforms. See Apple as example.

Having retail, even as key-cards or codes in a box means there is a choice were to purchase and therefore makes it unlikely legislators would intervene. I believe this to be the key reason 'physical' in what shape or form will remain.

That's a good point. Even though Tim Sweeny has said he will not sue consoles, Epic games might still find a way, and regulatory actions could come after them once they go full digital. It looks like Xbox is jumping into the all-digital world first, and they'll even let other stores sell games.