There's still unarguably a market for boxed games.
I can't tell you the last boxed game I bought. It's literally been years.
That doesn't mean others don't.
I'm sure there is still a market for boxed games, particularly in parts of the world with slower internet access. However, I doubt this market is worth selling your soul to a publisher for. Twice the sales isn't worth it if it means someone else getting 80% of the profits and owning the IP. (Note: figures made up to illustrate my point).