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Well, the normal PC game market may be facing this.  However, you see stuff like OnLive, where you get to demo the full game in short clips. I also see a number of demos of games for the XBox 360, from smaller Indie games, to larger stuff.  Big production titles may end up doing away with this, but ways to try before you buy that are legal, will still be around.

But, this should be added also: There is a HUGE push to do pre-orders where people buy stuff sight unseen, so the videogame industry can do the equivalent of box office with movies.