Both are good. For very long games (40+ hours), great local multi-player games (Wii Play, Wii Sports Resort, Madden), great online multi-player games (FPS, most sports, racing), sandbox, pick up and play, and some other games, it makes a lot of sense to buy the games. You can always buy the games used to save money.
For shorter games (Guitar Hero or Rock Band as long as you already own 1 version, most action games, games without any kind of online) it makes more sense to rent.
If you have a ton of money and really want to help a developer out - buy new at retail.
Many of my favorite games are now DL games, though. There are a lot of games on WW, XBLA, and PSN that I am interested in. Who type of games you kinda have to buy.
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