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I have a few problems with everything going digital.

One Internet limitation: I dunno about you but I'm limited on how much I can download/email etc(it's like 110GB but still...).

Space issues: For desktop PC's 500GB + is cheap my PC has 2, 750GB HDD and a portable media drive bay(for a 2.5") for laptops the price is considerably higher, for game consoles(PS3 qualifies with laptops) the space is limited and expensive.

Physical media: I dunno about you but I LIKE having a collection of games in my room. I have about 200 games on display on a shelf and at least twice as many in storage in my closet. I can keep them, beat them up, trade them, sell them do whatever I want. This can't be done with downloadable content. It's fine in conjunction with physical media but not alone in my eyes. I'll never go for it.

Life: Hard drives, flash memory etc ALL has a finite number of write/read that can be done on the specific clusters inside. They have a life expectancy. I'll readily admit it's a LONG and LARGE life but it is finite and will end. When my hard drive dies... what happens? I can't get my content back... I lost it. This is something that actually worries me... I have NES games I've spent hundreds of hours playing.. can I do this endlessly with a hard drive and the content downloaded on it? Sure can but when will it end when will it die? I won't know untill it's dead.