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It's not about physical vs digital games, it's about ownership
(popcar.bearblog.dev)
This is a most excellent place for technology news and articles.
Are you a videogame networking engineer? Because you've just handwaved away one of the most difficult challenges in gaming as if it were "duh that's easy" level simple.
I can link you some GDC videos that talk about how hard this problem is if you want
ETA: Also you've only addressed memory modification attacks. This does not address external aimbots that read memory to determine enemy player position and then send legitimate-but-automated inputs to aim and shoot. How do you stop cheaters from doing this when they can see exactly how data is structured in memory, how values are obfuscated, etc?
Different person, but isn't this already a problem with closed source games? My game dev experience is more hobbyist than professional, but I've spent a few lonely hours on ghidra. I also teach secure coding at my university, but I focus more on how to patch legacy systems and audit code for vulnerabilities. My point is that closed source vs open source, I see this as an issue in both systems and therefore irrelevant. Pardon my ignorance on this exact topic.