I used to be a game collector so I preferred physical games. I sold off my collection, don't really care about collecting anymore and recently started buying digital games. The reality of the situation is that physical media is becoming more and more archaic each passing year and will eventually be phased out completely as internet and hard drives improve. Just look at PC who leads the way.
When you actually think about it, the disc, the disc drive, all the moving parts, the delicate fragility of it all (don't get dust on the lens!), it's all kinda silly and I wanna move away from it. It's just an added element of potential failure, just another set of moving parts. A system with an SSD and no disc drive is the way to go for reliability.
Besides, the only reason these companies even still have physical media is because of the backlash they received when they entertained the idea of going all digital. The backlash is probably because lots of people still have slow internet or internet data caps, or maybe people just like the feeling of owning a physical game they can touch. Also, reselling games, letting friends and family borrow games, trading games etc.
But, the actual purpose and use of a disc here in 2021 is so minimal. All it really does is take half the load off the mandatory download you need to do anyways with any new game. After that, you're literally just putting the disc in so the console can confirm your game license, the system isn't reading anything on the disc at that point.
I think going forward, I'll probably still get physical sometimes if the deals are better, but I'm gonna go with digital. It's also much more convenient to have your library a touch of a button away, without the need to change discs.
1. PC obviously
2. PlayStation/Xbox tie
3. My microwave