They kind of have a point. In order to do a PC release (boxed version) you have to publish it and it's probably hundreds of thousands of dollars in publishing costs. Unless they sell a ton of copies of the game then they are not going to make back those publishing costs. So it might just not be worth the time and money. If it's an electronic release then the publishing costs will be much less so that would be the smart way for them to go if they want to make money.