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By your logic, Microsoft is wrong as well, since they continue to release 360 games, Windows 7, etc. in DVD/disc format.

My point is, the two medium are not entirely mutually exclusive (someone draw a Venn diagram to illustrate this), and they can coexists. Ie; just because Digital Distribution is "right" does not make Blu-Ray "Wrong". I enjoy buying Blu-Ray games/movies as much as I enjoy downloading games off PSN.