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Technically, Steam is already very successful as an all DD platform, so there is definitely a market for such a system, but even Steam allows for disk based installations to be added to the library.

The main reason why the optical drives will be around for at least one more generation is simply because it will remain a major means of distributing content through retail outlets.

Sure, every console maker would like to have what Apple has with the App Store, and what will be seen with the Windows 8 App Store, where all transactions are handled without giving away a cut to retailers or shipping or disk pressing/game packaging factories, but the majority of consumers are still conditioned to buy their games on what is essentially disposable media.

But successes like Apple's App Store and Steam are slowly changing that mindset among the average consumer.