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Well, at this point in time, most games are available for physical sale and digital rental, usually simultaneously.
Given the choice, most people still choose purchases over rentals. Not enough people have drunk the Flavor-Aid. This is particularly true in Japan.
The industry as a whole seems to believe every single secondhand sale should be a firsthand sale, which is completely illogical.
One of the major advantages of physical games for companies is they are much more visible. You walk into stores and see boxes, dummy boxes, perhaps posters.
On the other hand, something appearing on Nintendo eShop only is lost in the noise of RCMADIAX games. :P Seriously, like 90%+ of eShop-only titles are garbage. Throwing something decent into a pile of garbage isn't going to make people start rooting around in the garbage, hoping to find treasure. Most people will simply assume it's all trash.
It's also a show of confidence. Pooping something out on eShop-only sends a VERY clear signal that the publisher doesn't believe in the game AT ALL. Whether this is true or not is irrelevant. Everyone and their cat knows digital-only has far fewer risks for the publisher and is cheaper than actually making something. When you have a company that once upon a time was regarded as a leading worldwide developer and publisher of video games, who used to do physical-only for decades, it looks extremely suspicious, as well as unprofessional.
Anecdotally, I have one video game playing friend who wasn't aware that Censored Frame: Maiden of Black Water was available for rent until last week.
Capcom figures it has fans over a barrel since there aren't that many visual novel lawyer games on the market.
I figure, if they're not offering the game for sale, this means I can't buy it, so they get no money from me. As you've seen, there are other people on GN who have stated similar sentiments.
Xseed Games are on record claiming they can't make physical releases of digital-only games, and then Nintendo, Sega, and others have, so while not impossible, Capcom has given its erstwhile fanbase the middle finger so many times, I wouldn't hold my breath.