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BraLoD said:

You can make as many copies of your physical media as you need to keep it continiously preserved, if needed.

There is literally no downsides to physical media aside of having the physical space to store it.

The issue is the rights. If your studio closes and go bankrupt, who will keep creating the physical games?

If there was a law that make any IP from a defunct company to be from public domain, this could be solved, but right now if a company close doors and don't share the source could, don't sell its IPs and don't give up the copyright, then the game is technically lost 

Lastly, the issue with physical is it cost money to print. If nobody is buying anymore, no company will keep producing them. Regardless of them being public domain or not