[jim5cents]

i have never thought the retail for video games was going anywhere. to play current gens, the majority of gamers do not have the knowledge about how to mod a console to play burned games. even still, those who do are likely to purchase the hard copy anyways. the online game rentals aren't going to hurt as hard copies of the games will still be sold to the providers.

concerning blockbuster, it has little to do with digital downloads, and much, much more to do with its poor business model and direct competition with other providers, notably netflix, redbox, and on demand entertainment via direct tv, dishnetwork, or cable provider.

in the comments section, the topic of consumer demand for a digital download only console is brought up. this would be the only situation that could hurt retail. from a production standpoint, it makes sense to distribute games in this fashion. reduces production costs, storage, shipping and they would likely not change the price.

subquestion - has anyone purchased a full length, current console game in digital format? i don't mean dlc, wii vc, or xbla. in my case, i have purchased fallout 3 on xbl for $30.