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CDiablo said:
Digital downloads will only work if there is an open market for it. You can buy your PC games from Steam, GFWL, GOG, origin ect. This way you have services competing with pricing. When games are only available from PSN, XBL, Wiiware you only have one option if you want to play. Systems like this will have dramatically reduced userbases and or sales.

The problem is prevalent today. There are games on XBL that are the same price they were in 2007. Some have been on sale once maybe. Imagine if games were only available digitally at $60 a pop. Idiot greedy publishers will keep the games at that price forever and sales will plummet because there will be less money in the hands of gamers due to less sales/higher prices and no where to sell old games.

Agree. Publishers have drastically started to support PSN with more Digital Downloads of full games from 2011. Even taking the trouble to release older games in DD form. Take a look at our article in full. it goes into greater depth.