Physical was a massive barrier to distribution and essentially made players like Ubisoft/Activision etc into kings because they alone held the keys to physical distribution and printing at scale. Indies and innovation in the space only arrived once we started moving away from the norm of all games getting physical releases (sometimes with no reprints!).
The loss of this "moat" is the real reason why bloated AAA productions are stumbling so badly in recent decades. Phil Spencer actually captured this very succinctly in this
leaked email (then proceeded to take on the big risks of two mega AAA publishers anyway because he's giga retarded).
People really need to wake up and start thinking about the future. The real fight here is over consumer rights in the digital world and people are instead screeching about discs that no one under 30 even buys!
There are teens and kids playing all-digital today and soon it will be all they know, if we don't act now by pressing regulators and governments then the amount of potential financial exploitation coming their way when they grow up is utterly disastrous. Norms are being built as we speak and they need to be scrutinized before they become reality!