Microsoft: Digital Distribution Will Outstrip Physical Sales

[shams]

I used to hate the idea of digital distribution - but am slowly coming around to it.

Its mainly because of library size, and the sheer number of titles coming:

Music: literally haven't bought a CD for YEARS. Digital all the way. I'm even getting sick of my CDs hanging around (clutter = bad)

Movies: I still buy DVDs, but primarily really CHEAP titles that I have some emotional attachment to (i.e. $5 horror movies). I don't even rent movies anymore - streaming over the internet will do me, and means I can watch anything, at anytime - without having to leave the house. Its like my library has grown by 1000x times.

Games: WiiWare has really changed by spending habits. I now buy less physical discs (mainly the "smash hits" such as Brawl), but am spending more of my time using online content/channels - and this on the Wii, which has easily the weakest online service (and no offline storage :<).

One of the big reasons for this, is I have generally run out of room in my house for physical media (discs/CDs/games). The other is Steam - I'd much rather pay a fraction of the full retail price for something now, and just have digital access to it. Its just too easy.

...

People are assuming that games HAVE TO be large. This is just wrong. Look at the VC titles. Look at XBLA. Look at WiiWare.

The next generation of consoles will be all about online content delivery - and it might even happen this generation. I'd be quite happy to get my hands on a "drive-less" 360 or PS3.

As for piracy - its much harder to pirate digitally distributed software than it is to pirate physical media. Much, much, MUCH harder. Its probably the "real" push behind digital distribution.