S.T.A.G.E. said:
Its extremely inconvenient for me to digitally download, and I buy three games a month on average physically during a healthy gaming season. You're really not thinking about the vast gaming community. I am lucky to have cable internet, but I share it between people in my house and it gets caught up, but theres people in America or around the world with DSL or worse, dial up or nothing at all. They need physical copies so they can just save to the HDD and get to the gaming. Those without the internet need to have the local multiplayer (Military, rural, second and third world). Until those things are remedied you cannot deny the majority.
You also have the issue of ownership and collecting, which publishers have actually invested into to satisfy the most hardcore of gamers who like collectibles (which mind you are in limited supply). When everything goes digital, that market is forced out. Only at cons and first party can you buy collectible decor for the house of your favorite characters and games complete with the titles themselves. That and the collectibles themselves without the bundles are at hiked up prices, generally speaking.Collectors have the choice to save them and sell them off for much more if they are a big title in mint condition. Plenty of people are doing that today. Its much more expensive to buy first party. The collectibles also save you money.
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The collector niche is probably a lot smaller than you realize. Even the vast majority of core gamers really don't care about having a visual collection of boxed media decorating their shelves, much less "collectibles" that generally aren't worth what one paid for.
While there will probably always continue to be a market for collectibles and collector's editions, I really don't see the market for those do anything but shrink over time. Remain flat at best.
At any rate, that's pretty poor excuse for publishers to continue to rely upon physical media sales.
If anything, collectors should be demanding that fewer copies of anything they want to collect be produced and made available for purchase because it's only when demand exceeds supply that any collectible is actually worth anything. If the number of collectors isn't increasing, the only way to see collectibles appreciate in value is to reduce the supply.
A better excuse/legitimate reason would be to keep retail outlets and retailers in general in the loop and keep as many sales options as possible available to the consumer.