Some people like to still have the box for collection purposes. Personally, I agree. I think the only physical option at this point should be something like a collectible steelbook if all they're going to have is a redemption code.

To sell in physical stores so parents and other people can buy them as gifts.

That's way, the people with slow Internet will have a nice box to look at while their download fail.

I'm not entirely sure, but the game disc can still be sold. Isn't it? If it is just a code you enter and then don't need the disc anymore, then you cannot sell it. Its basically a digital code only, like on Steam / PC. But if the game disc acts as a license, then it will download the rest of the game and you still need the disc to play. In that case you can sell the disc and no longer play the game. Similar to how game key cards work on Switch 2.

Another reason why big publishers want to have a physical release is, that they have a presence everywhere where "normal" games are also sold. Maybe your mom buys it for you, or a friend gives a gift.

So people can give it as a physical gift. That's really it.

Many retail games still allow you to have the full game without any service account or internet connection.

Same question:

Why are funko pops?

Same answer.

Some stores have said that they won’t sell the physical copy of GTA 6, due to it being just a code.

There are some rumors going around that a physical disc copy of the game comes out in December, so I guess it’s better than nothing, but still sucks.

To play devil’s advocate: physical disc releases are a security nightmare.

Pirate groups pay big money to get access to disc images before release so they can have a crack ready on day 1, and leakers would love to get early access so they can drip feed information for social media cred. The bounty for an early iso of GTA VI would be astronomical.

I do however agree that releasing a ‘physical edition’ that’s just a code in a box is a waste of everyone’s time and money, not to mention materials destined for landfill.