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It boils down to the simple issue of cost effectiveness, which was the real reason game distro moved to optical formats in the first place.

While it would be nice to pick up a 8GB game on a chip with a read speed that matched 3.0gbps HDD speeds for the same price as a disk that cost less than a dollar to press, that's a bit of a pipe dream. When you start factoring in games that measure in at 25+GB published on BD, it starts looking a bit more like a crack pipe dream.

I see digital distro becoming more of a standard before that day actually comes.