When will physical video games go away?

One of Sony’s best-ever PlayStation ads is a 21-second video titled, “Official PlayStation Used Game Instructional Video.” It’s a “step-by-step” guide about how to lend your PS4 games to your friends. It has one step: one person hands another person a game box.

The ad succinctly clowns on Microsoft’s original and convoluted game sharing policy for the Xbox One, which let users ditch discs in exchange for daily DRM checks. The idea was so hated that Microsoft walked it back...