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Zucas said:
Well it depends if they throw it off as a completely separate platform. DS Lite and DSi are selling at the same time but the differences are minimal. PSP GO (what a terrible name btw) and PSP 3000 have quite the differences too them.

Personally, my big question is how many retailers are really going to want to carry this. No UMD drive means no way to sell the software. When companies, especially like Gamestop who make fortunes on used games, this is kinda a slap in the face to their business.

Will they even sell it? Will Sony have to give them a cut in the software such as cards or ways to sell it? Even further, is there going to be a lot of pissed of gamers who like to have boxarts and cases when they buy their games? Really, I think this is a really bad move and shows too much concern for the rising iPhone. They should have done something more like the DSi where it shows that while we think the iPhone is an issue, we aren't afraid of it and still show we are dominant when it comes to gaming.

I think you are forgetting the release of Patapon 2 in NA, where the game was download only, but retailers carried boxes with coupons inside, with codes that could be redeemed for the game to be downloaded. The game cost $15 for download only, but $20 when bought at retail.

EDIT: Of course, the used market will be affected, but retailers should still be able to sell some software.