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I love the used game market and see it as equal to the used car, clothes, etc markets. However, I also enjoy the digital delivery system. Looking at Steam as a model, I'd figure I will still save the same amount of money over all as game prices drop quicker and/or start off smaller due to lower costs on the publisher.

However, I am unsure if this is just around the corner as quite a few people just don't have the internet bandwidth to reasonably download a DVD based game let alone a HD/Bluray based game.

Additionally, the box/console will still exist as you still need a spot to store the game and play it on. So long as the console is made to be easier to utilize in a front room environment with many special features and/or unique first party software, it will exist and Nintendo will be stamped on it.