Mostly physical.
Digital still costs the same most of the time on consoles, and I generally can get games cheaper from Best Buy as a gamer's club member (20% off new, 10% off used, and it applies to things like Amiibos), especially if I wait like a month.
Example, I just pre-ordered the physical edition of the Wipeout Omega collection (because pre-order bonus and I love the series), and it's $8 cheaper than the digital edition, because of the discount, but excluding that, both editions cost the same, even though Sony wouldn't have to bother paying for the case, the artwork, and I have to use my broadband to download it with the digital version.
I only get digital if I have to. PSN, Nintendo, and XBL don't hold a candle to Steam.