If Hardware Becomes Irrelevant, and Digital Distribution Takes Over

[shio]

Then it will be an all-out battle royale between the many Digital Distribution services. We'll see Xbox Live and PSN trying to claw their way to Steam's back, and Battle.net will keep stomping everyone else.

If hardware becomes irrelevant, what will Nintendo do?

And how will all the other services be able to compete with Steam as the top dog?