Like streaming with movies and music it will come down to convenience vs quality.
Music streaming and CDs have reached parity so there is very little reason to go for CD when you can stream at CD quality or higher with something like Tidal, and the wide range of choices and also music going up on streaming at release date means streaming easily makes the most sense.
Movies still have an audience for physical if you are interested in quality as streaming still hasn't hit blu-ray or UHD blu-ray quality, you also have much more limited choice with streaming and wait times for release dates. Blu-ray will usually come out a couple of months after the movie whereas it could take 12 months to hit streaming/TV if it gets there at all.
Gaming at the moment looking at PS Now seems to be more in line with movies in that games are either old or indie and the streaming quality just isn't there, nor will it be for some time.
Its pretty clear that streaming will be the future, but PS5 gen won't be impacted at all.
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