Tommy
bigot with fetish for footballers getting fingered
Answer is simple: Xbox Live & PlayStation Network don't have to compete with anyone, as their storefronts are monopolies on each console. Retailers have to compete with each other, and they all want that small cut of the sale, so they'll try to undercut/out-do each other.Doesn't explain why they often cost more than in a shop though, other than counting people who can't be arsed going to it, which is very likely the case but pretty unreasonable in my opinion.
I'd definitely stick to physical if I were a console gamer right now - Especially on the Switch. I know there's I've bought on PSN/XBL more than 10 years ago that are still there, but with how bad Nintendo's track record is with account systems, even if the Switch is supposedly better, I'll not be buying any digital copies when I finally get one (unless no physical option is available).