There are issues with digital distribution that might still keep physical media around. One is ownership. You don't really own game software unless it's DRM-free. Steam, the eShop, and most online game stores sell you a license. That can be taken away at any time. If the servers go down, so too do your purchases. You also can't resell digital games, or loan them (easily) to a friend. Despite all this, I actually do prefer digital and the benefits outweigh the negatives for me, but it's clear that not everyone will agree with all-digital. As long as games are still bought individually (as opposed to a Netflix-like service), there will always be a market for physical media.