Seems like more publishers have been opting for the more expensive physical version with the cheaper digital. Seems like a fair trade off due to the increased options of potential retail discounts and reselling with a physical copy that offset the additional costs added with producing physical games.
Hopefully it doesn't effect physical sales too much, but I think it's an arrangement that seems to logically make sense with less cost associated with digital releases and is something people have thought should happen as digital sales started becoming more of a thing but hadn't happened, at least on consoles.
I remember seeing people claim that Nintendo had a policy that required digital pricing to be the same as digital pricing on the eshop to not upset retail partners. That doesn't seem to be the case now if it was ever really the case in the past.