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I agree, actually. The brick-and-mortar retail shops would despise a downloadable console -- they make heaps of money from software, not hardware, and unless the console accrues a ton of sales in a consistant manner, they wouldn't touch it.

If retailers don't carry it, it'll be real hard to sell directly. Downloadable games make the middlemen angry.

Already GameStop has pulled games because they are available on Steam or D2D when they are released. Downloadable games would not only kill their regular retail business, it will kill their used sales as well. They *hate* downloadable stuff.