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Damnyouall said:

Digitally distributed console games can't be given away, sold, touched, or even backed up, and they are locked to one specific console/account. You can never get back even a single cent of the moeny you paid for a DD game, and if your gaming console breaks down (say 10 years from now) you can't just buy another FunBox 3 and transfer your game there. Once the original distro channel is gone, you are S-O-L.

If I download a game off of PSN, and theoretically suffer a hardware failure, I can log onto the Playstation Store, select that game, and re-download it.  If I buy a physical copy of the same game, and while removing the disc from the drive I drop it on the floor and it becomes scratched and unplayable, I can never play that game again without re-purchasing it.

I totally understand where you're coming from, but physical distribution has downsides as well, and this is not a cut and dry issue where one distribution method is all upside and the other is all downside.