@Dunno - Definitely excellent points. I wasn't implying that it could move to rent online only, just as a removal of the Blockbusters, etc from the gaming market.
Another thought that popped in my head while reading your reply, what if the companies themselves made their gaming database a cloud based network. Basically you log in to their server, and have access to play all the games available for that console. All you pay for is a monthly subscription and can play whatever you want as long as you want as often as you want. This still leaves the need for a console interface, but basically a box with video, user input devices and network/internet connectivity. This is more directly what OnLive suggests it will do.
@liquid ninja - You are leaving out a very important factor. Developers HAD the money to begin with. They invested the money in producing the game. They (or the publisher funding them) spend millions of dollars to create a game. If they don't make back their money, they then lost money they invested. Your homeless guy didn't invest any money into exposing himself, which is why I said your argument is flawed.
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