Sqrl on 06 August 2008
Digital distribution is better in every meaningful way, the only downside is a psychological one. Physical media can be lost, broken, stolen, etc..where as digital can be re downloaded at any time. If your console gets stolen there is no games for them to take also, you just remove your console from your account and re-attach it to your new console and voila you only lose the console and not the 20 games you own.
The only thing holding this back right now is bandwidth for most consumers, but that will get much better in the next 10 years and I would be surprised if we weren't downloading the majority of our games by 2018 when the Xbox 1080 launches =)
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