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Train wreck said:
Another nail in the coffin of game retailers, especially Gamestop. If you are locked into a console for two years, you would be less inclined to trade it in.

Also since there will be no barrier to entry, Sony and Nintendo can easily come in and offer better prospects (games for example) and undercut Xbox at their own game.

Hmm not entirely. There will always be places to sell the hardware. If you think these deals are the nail in the coffin than you must really hate Steam and similar services.

Sony and Nintendo can easily counter this strategy, but that will require them to do the same which basing that off your first point will hurt retailers..

I honestly dont care for retailers, they are known to rip customers off and are also the reason we have expensive products.

Netflix hasn't stop stores from selling DvDs and Thats been a thing for years now.

More options never hurt anyone.