There is no argument, Digital is a far more superiour way to buy and play your games. I have had more console and disk problems with my games then i ever did with digital. Your basing your argument around "What if Steam shuts down" lol honestly you really think they will shut down? If you were right another company will pick it up and continue it. Its a major cash grab.

Your next gen console relies on the internet, most of your games require internet to play and to download the day one patches. Without PSN or Live your console is a sitting brick.

Have you notice that the game box you have has nothing in it? The console only needs the disk to prove you purchased it becasue the stupid gaming community we have today hated on DRM so now we are forced to put a plastic disk in the plastic box to give the tick of approval. Buying phyiscal is a complete waste of resources and the sooner we go 100% digital the sooner we will have Steam priced games. The longer companies have to supply disks the more we will pay for digital because they want to sell you the disks first becasue again "Stupid community" 

Its not like the past where you can look at your N64 collection and go "I own those games" espeacilly with the formats we game on today its only a cover nothing else. I dont even think my PS1 or NES even work today due to there age, so i have 500+ unplayable games because i have no other way to play them. But you would rather that then have a service that looks after your games for you. Imagine you have a house fire? You lose all your games, but if you have them online there untouchable and always ready to download.

Digital is also the best form of backwards compatiablity, you dont need to own multiple types of hardware and to hope to god your old consoles still work or worse, hoping the disks/cartridges still read.

Sure you cant sell digital but you can always sell your account. I personally dont buy games to sell them.

Digital you dont have to take care of them.

No. You just have to hope your consoles HDD lasts forever and the console is supported forever.

Not everyone lives in a perfect enviroment, people have lost there belongings or even there houses. What happens then? Do you get a refund on all your games you lost to your house fire?

Two words: Homeowner's insurance. Not a homeowner? Two other words: renter's insurance. There's also other precautions, like investing in a fire extinguisher and a home security system. And besides, statistically speaking a catastrophic house fire or home buglarly are rare events, while a hard drive is guaranteed to fail at some point and a console's online service is guaranteed to be shut down one day.

No, can you redownload them if there digital? Yes.

Not if the console isn't supported anymore or specific titles have been delisted. If the digital store you bought your games from ceases to exist, well, good luck redownloading them. Also, a delisted title is gone forever unless it gets relisted, and there's no guarantee that'll ever happen. Meanwhile, pretty much every notable console game can still be bought second-hand long after it's gone out of print.

Hardware doesnt last forever.

Two more words: Hardware clones. Patents only last 20 years. There's already hardware clones of every system as recent as the Genesis and SNES. N64 and PS1 clones will probably start showing up not too long from now. Also, functioning hardware units for older systems can still be bought second-hand. There were some 30 million NES units sold in North America. It's not difficult to track one down.

Same goes for disks and formats.

ROM carts and optical discs have an optimum shelf life at least as long as a human lifespan. All my games purchased in the 80s still function, as does the hardware. Good luck finding a HDD that will live 30+ years and a console whose online store will be supported for 30+ years. It ain't gonna happen.

There are no benefits anymore having the games on disks, infact you get more disadvatages having it on disk then digital. The sooner the gaming community move on the better the industry becomes.

Yeah, because giving up ownership and thus ceding total control to the rights holders and content providers in a closed ecosystem is a brilliant idea. I think after the XBO debacle of spring 2013 it's clear that gamers need to keep the industry on a short leash. Going digital is basically saying "Okay. You're the boss now. You call all the shots." There's more than sufficient evidence that the game industry cannot be trusted to not screw us over. MS already tried (and failed) giving the middle finger to the First-sale Doctrine. Console gamers don't need to be doing the same. Copyright holders have been trying for decades to gain absolute total control over everything, and if they had the chance they'd annihilate every "safety valve" there was: the First-sale Doctrine, Fair Use, and the Public Domain. I don't know how things are wherever you live, but here in the U.S. IP law is more than a bit of a joke, but what safeguards we do have have proven invaluable.

Pointing to PC as a supposed exemplar of digital distribution doesn't work, because PC is an open platform and with competing storefronts there's at least some incentive to not be total pricks to the customer. A fully-digital console would involve you buying from and only from the console maker's digital store. Buy an all-digital Xbox V or PS6? Be prepared to only be able to buy from the XBL Marketplace or PS Store and deal with the potential consequences of a de facto monopoly on content distribution on the platform. Asking for the console market to go all-digital is asking for trouble. The PC market and the console market are two totally different beasts, and while all-digital may make all the sense in the world to a PC gamer, the rules that apply to PC do not and never have applied to consoles. Period. You may enjoy Steam as a service, but please don't expect us console gamers to give up physical media just because of your personal preferences.