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If there is a DD console and there is no physical sales of games at all, then the big companies can control the market and never do price cuts, and increase the price if they want to. Since they control the market and there is zero competition. an DD only console will fail, by fail it will sell around 5-10 million units but an physical ownership one will sky rocket like the PS2. 



Of Course That's Just My Opinion, I Could Be Wrong