LRG can totally exist even if no hardware has a physical media slot. They are still making games for ancient platforms.
And we've already seen that you sure don't need the actual game to sell a physical version. Empty cases have been at retail with no disc/cartridge and I can see that happening more often in the future - not at retail, where this stuff definitely won't exist, but smaller LRG-like operations will totally be making physical product with a DLC code. Sony just released the Spider-Man 2 CE with a steelbook and nothing to put in it (they couldn't even bother with a soundtrack).
And we live in a world where Target's little media section has decreased the presence of DVD/Blu-Rays while expanding vinyl and books. Yes. Vinyl.
So tired of hearing the vinyl example. I'd refer you to listen to the most recent LAN Parties podcast; they interviewed former Sony head Shawn Layden. His discussion about physical games and the industry's self-destructive battle on preservation is insightful.
Vinyl/music have a far longer lifespan than a $70 videogame that basically has its launch and that's it. Touring artists mean vinyl and albums - which are really just merch vs. a videogame which IS the experience - have multiple high exposure sales opportunities. Every time Swift tours, her vinyls/albums get featured and product sells.
As Layton points out correctly, games just are a completely different beast. The sales model relies on that first couple weeks of sales and dips.
It's a sales model that IMHO he's right is unsustainable for aaa and quad-a games consumers keep demanding.
He doesn't offer a rosy look for the future of the industry, creatively and fiscally. The other shoe is going to drop and we could eventually see very little variety and an Atari-like collapse ... or more likely, even more consolidation - which will only further constrict creativity and output.
His comment that gamers who don't play COD for 10 years won't suddenly want to play it is right, and yet the industry keeps pumping money into another dozen battle royales/fps shooters. His comment that the music industry was disrupted by non-creative outsiders Apple and Spotify like the movie industry was by Netflix and Hulu are interesting.
Google has tried. The industry resisted, but the next go around may be very different.
This is why I think rumors of Disney stepping in would be the best of the worst scenario.
Sorry for the rant
