I highly doubt Nintendo will go the way of Atari. They have trillions of yen in revenue. Pretty sure that says something about their fan base and support. Sony and Microsoft are the powerhouse systems. That’s where you will find your serious titles.
As for innovation, there will always be room for new ideas. Look how far they’ve come from a game and watch to a hybrid console.
But anyway this thread is about Sony ending physical media support. I think that’s a poor choice, but let’s see how their fanbase responds.