People want retail games and if the big 3 can’t cover that market a new and more sustainable subject will fill that space. Maybe it’s time to bring back physical media to PC, a more open system where publishers could make profit selling their retail games similarly to vinyls for music.
No one actually wants physical media other than collectors and preservationists, and the latter can just write digitally obtained files to storage after the fact.
Modern games are very bloated, and even optimized 4K textures still take up a lot of space. We’re past the point where discs are remotely feasible as a way of efficiently storing games.