As I recall, I told him that he was probably right when he said that. I certainly would prefer to release everything physically... but sometimes, you gotta do what you gotta do.
Like I said to Sagadego, just remember that we're always fighting the good fight, and trying to do everything we can to release games physically whenever possible. But due to circumstances beyond our control (and numbers which we're legally unable to share, unfortunately), that's becoming less and less possible with each passing month.
The whole of gaming is going digital-only. That is the direction where things are headed, and I don't think we're the only ones affected. We're tiny and have razor-thin margins on everything we do, so we're affected more now than a lot of larger companies... but I truly doubt we'll be alone for long. You physical game collectors had best stock up while you can, because I think pretty soon, physical releases will be in the minority.
It's a shift I don't much care for, but ultimately, it's the games that matter. As long as I can still play awesome games, I don't really care if I can hold their boxes in my hand or not. I'm paying for the experience -- the box and cartridge/disc are just bonuses.