You know those "Day one patches" on practically every major console game these days are clearly just DRM disguised as bug fixes/content updates (that I say are intentionally left in to practically force people to go online and download the patch - thereby authenticating the game).
Might sound like a conspiracy theory but it makes perfect sense. What about people who don't have an internet (or a good internet) connection, you say? Nobody gives a shit about those three dudes on a nuclear submarine trying to play Halo online multiplayer.
Nawh
Usually they have a mix of assets, code, and hotfixes; make the game unplayable incase some one gets a copy of the non-drm game decrypted
Preloads on consoles without DRM would make it rife with games being leaked early in the pirate scene (They may have learned from this in the past, winkwink)
You COULD add your own DRM to console games, but it's not something I've really run into; usually the data package on the console itself is encrypted and uses the platforms provided DRM in the SDK to avoid piracy
If not, say it's an online game, the platform, say XBox Live, does authenticate your account (Are you who you say you are?) then authorizes (Do you own this game?) then does whatever else the developer wanted, if they even care to further authx/autho; most of the time they just pull the account info from the originating platforms info and build it into their DB so you don't have to do an account creation process on their game and drop you in
Physical copies are considered "More Secure," because the store would have to break release date for you to get the game; No Man's Sky comes to mind, dude got the disc, dropped it into his console and played without the day 1 patch
Pokemon Legends was leaked early in the break release date fashion since we know how to get around the console's built in DRM. Someone gave/sold the cartridge early, dumped it and gave it up.
I can't think of a game on the Switch that has DRM built in either, or PS4...or Xbox, typically because if it fucks up on a person who has a legit copy it's a bad experience. A customer will remember 1 bad experience and forget 100 good ones.