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If he's talking about download only, then no. We're a long way from that being feasible for everyone. Games sales would plummet.

If he's talking about solid-state formats, then yeah, the technology is definitely there. The media itself would be more expensive, so I don't know if publishers would like that, and damn if I want game prices to go up again, but it's a better hardware solution.

It would not surprise me at all to see Microsoft go that route. Sony, however, will probably stick with Blu-Ray.