Something I forgot to mention yesterday is that for console gamers, the majority of them still prefer physical media. According to a report from Nielsen from two years ago, two-thirds of console players prefer physical over digital. That's the most recent figure I could find, and it may have dipped a bit since then, but it does suggest that Capcom's PS4 AAA releases have a much, much lower digital percentage than 80%, a rate that, as mentioned, almost certainly includes PC and digital-only releases.
I think most console gamers are at least cognizant of the fact that digital on consoles have serious drawbacks that far outweigh their benefits, and that, conversely, physical has numerous benefits that far outweigh the drawbacks. Actually owning our games still means a lot to a lot of people. And as long as there's still significant demand for physical, we will continue to see physical releases for console games. Also, no other sector of the entertainment industry has phased out physical media. No other sector has been impacted by digital more than music, with album sales (most of which are, incidentally, still physical) having declined over 90% from their late 90s/early 00s peak as most music buyers got most of their music through digital singles (and now, increasingly, streaming radio apps; free broadcast radio is still popular, too), yet the recording industry hasn't stopped printing CDs, and vinyl records have even made a comeback. If they haven't forced an all-digital market, I don't see Sony, Microsoft, and Nintendo doing so.
But if any of the Big Three ever do abandon physical media, they won't ever get a dime from me ever again. I'll still have over four decades worth of games to play to keep my busy for the rest of my life.
For the environment.
I don't agree with this argument because the math doesn't back it up.
First of all, the plastic waste argument falls apart quickly upon scrutiny. The amount of plastic waste that comes from physical games is vastly overstated. As of Dec. 31, 2019, there were 1.18 billion PS4 games sold globally. Now, obviously not all of those are physical copies, but let's assume that about 80% of them are, meaning about 945 million discs. A standard-size optical disc is about 13.57 cubic centimeters, so if you melted all those discs down and made a cube out of them, it would be only about 12.8 billion cubic centimeters, which sounds like a lot until you realize that that's a cube only about 23.4 meters per edge. That could fit into my small-ish back yard, and would only be a tiny section of the typical landfill. And the game cases (original dimensions, meaning not melted down, since they are storage boxes) occupy only about 23.67 times the volume, meaning a roughly cubic shaped stack of 945 million PS4 game cases would be about 67 meters per edge. So, even if every PS4 owner threw out all of their physical copies, case and all, the amount of garbage would be far, far from ruinous (in the U.S. alone, all the garbage tossed in one year amounts to a cube 805 meters tall, which is over 1700 times the volume of a 67-meter cube), and I'd submit that only a tiny percentage of those games actually will be discarded. Even if 10% of all physical PS4 games get tossed into the garbage over the next decade, it would barely register compared to how much trash we produce in general (only 0.005% of the U.S.'s annual garbage output, if I did my math right). Also, game discs and cases can be recycled, so it's not like they have to end up in a landfill if someone wants to throw them out. The amount of discs and game cases I've discarded over the past 20 years amounts to zero.
As for CO2 emissions from the manufacture and transport of discs, I would imagine that's a very tiny portion of our total CO2 emissions. The entire video game industry in the U.S. represents only around 0.2% of the total economy, and that's including PC and mobile. Video games clearly make up a very small portion of the total amount of freight shipped around the world, as well as the amount of goods manufactured (incidentally, over 700M music CDs have been sold in the U.S. since 2013, almost certainly as many or more than the number of physical game discs sold in the same span). And those emissions can be mostly if not entirely eliminated through phasing out fossil fuels for electricity generation and transportation.
Going digital will not make any meaningful positive impact on the environment. Buying a home solar power system or an electric car would do vastly more (though it would be a lot more expensive). Walking or biking places when possible, or eating at home instead of buying outside food, or simply cutting off the lights when you're not using them would probably be more effective as individual actions. But major structural overhauls of our energy economy is what's really needed, not token gestures like phasing out physical console games, which would be a net negative for console owners given the current state of IP law and the pros & cons of digital and physical media as they exists on consoles.