That is weirdly good news, glad we'll still get cheap games, never knew about us being ripped off even at £30 though! Don't even know what to think anymore.

It's surprising how many people don't realise it.
A physical copy has these costs as an absolute minimum even if the supply chain is perfectly optimised to reduce the amount of stuff being moved around as much as possible:
The disc.
The box.
The cover.
The cost of moving each of those items to the place that makes the boxed game.
Pressing the game into the disc.
Printing the cover.
Putting the disc and the cover in the box.
Transporting the boxed game to the shop or warehouse. This cost is greatly increased by the fact that you need to supply thousands of shops and warehouses.
On top of that, some or all of the following will apply. It's possible for the publisher to own some of this chain, which would remove the need for seperate profits for each link in the chain (but not the actual costs of doing it, above).
Profit for the manufacturer of the disc.
Profit for the manufacturer of the box.
Profit for the manufacturer of the cover.
Profit for the transport company that moves those items to the companies that process them.
Profit for the printer of the cover.
Profit for the company that presses the game onto the disc.
Profit for the company that combines the parts to make the boxed game.
Profit for the transport company that takes the boxed games to the numerous shops and warehouses.
It's also worth emphasising that every one of those costs applies
whether or not a copy is sold. So you're either going to lose sales because there wasn't enough stock to meet demand or you're going to have to eat the costs whole, without getting any money at all, for unsold copies. In fact, you'll almost certainly get hit both ways because of the large number of sales points - you're going to have too many copies in some and not enough in others.
Then there's the final cost - the money for the company selling the game. Which, of course, includes all of their costs as well as whatever profit they can make off the sale.
In comparison, digital distribution costs are tiny and they are always perfectly matched to the number of sales.