It's not a hold out thing. When you drop out the disc drive, you automatically lose out on the majority of sales by retailers who will always be willing to undercut digital platforms, same when you decide to go all digital on others types of media. I can regularly go out and buy a BluRay combination pack with a digital code for cheaper than buying the same movie digitally, and oftentimes I can put that through a DVD or BluRay ripper and make my own digital copy regardless. I can regularly go out and pick up a CD (or vinyl even) of many newer albums and get better quality audio for cheaper than what iTunes provides. Steam only succeeded because they were willing to give the middle finger to retailers, and even then many retailers still do carry a small selection of PC games and move them on a frequent basis, especially large AAA releases that have a large installation. I bought the Elder Scrolls Anthology, Starcraft 2, and Diablo 3 (to name a small few) in physical forms because of the what came with the orders I made. I even picked up Final Fantasy XIV A Realm Reborn as a physical copy just because it was cheaper than what was being priced online for digital only. The real issue is internet access, and as long as games are releasing at upwards from 30GB per game, ISPs enforcing data caps in many areas, and an actual lack of decent infrastructure for internet in many areas here in the US, digital only is a bad idea. The original plan of using a disc as the installation medium and then the Xbox treating the game as a digital copy was a brilliant copy from something Steam does for physical games (since you can get those still, and many still do purchase them because of the deals they can get). Some people literally cannot afford to spend 30+ GB of their bandwidth on a game download (or a few downloads), much less watch Netflix at 3GB per hour in HD.

Digital media isn't going anywhere. People have been saying that for a decade, and it still isn't true.