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Extremely well written, simple and insightful piece. I see digital sales account for 50-60% of revenue for most SW game publishers at year 2 of next gen (as of launch of the last console). The consequences of this are:

1) Retailers and publishers are more distanced (as mentioned in the article)
2) Publishers make more money (due to higher margin and elimination of the middle-man)
3) The games industry booms (it's more convenient to buy games from home than to go to the store).
4) Game retailers like ebgames or gamestop will likely go out of business unless they change business formulas.
5) More platforms will directly compete with each others irrespective of HW limitations. Android vs iOS vs Nintendo vs Playstation vs Xbox will all be mostly one and the same.

The trend is there, I believe it will hit many by surprise how fast it will actually happen. It's already begun, and come this summer with NSMB2, it will be a revolution in the console industry for sure.