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Adinnieken said:

The consumer only has an incentive if the price goes down.

Best Buy, Wal-Mart, Toys-R-Us don't really care about the second-hand market.  If they're in it, like Best Buy is, they'll take new sales over second-hand in the long run because the only reason they entered the second-hand market is because Game Stop is so financially successful doing it.  That SHM starves BBRs like Best Buy and Wal-Mart not only with the original sale, because a kid walking into Game Stop will trade in a game to buy the next one he wants, but another potential gamer will walk in and pick-up the game taking away another potential sale.

Kill the SHM and new unit sales will increase.  Make it digital, make it inclusive for BBRs, and give customers an incentive to use it and it'll work.

I personally like a digital library of games.  As someone who had 8 Xbox 360's go bad, 7 of them because of a DVD drive failure, I can atest to the benefit of a digital library.  Would not want it any other way!

I can go to my nephews console, download a game, and play it on his console while I'm logged in to Xbox LIVE.   I don't need to remember to bring a disc or take it home.   That's awesome to me.

Do I lose the ability to sell the games?  Sure, but you're talking about a feature I don't really care about.  I kept my original Xbox games long after I sold my Xbox.  My nephew wouldn't agree with me, though I could convince him of it.

There would be trade-offs and the trade-offs have to offer value.  I won't disagree with that. 

Oh...If I don't have Internet, and the only means of getting a game is via a kiosk that makes me wait all of 6 minutes to transfer 50GB of content...I'll wait.

A kiosk can be multi-faced with a single data store.  For example, a cube.   

True, it's a good prospect for big electronic stores.
Incentives in price, or a week earlier availability would get people to sign up.

I personally like a digital library of games.  As someone who had 8 Xbox 360's go bad, 7 of them because of a DVD drive failure, I can atest to the benefit of a digital library.  Would not want it any other way!

I'm the complete opposite with that. I also had 360's and ps3's fail. Redownloading all my xbla/psn games was annoying every time and takes a huge chunk out of my monthly internet cap. Storing saved games online is a nice feature, but I rather have a simple synchronize savegames to usb stick option.

New game sales might go up a little bit without the 2nd hand market but I think total full price sales will suffer. A lot of those are financed with trade in credit. Less total games in circulation also means less dlc sold. Yes the industry will get a bit of that money that game stores take with 2nd hand sales, but I have a feeling the overall industry will initially suffer from these stores going extinct.

Oh well I'm going to enjoy the current system while I can. I'll be trading in a couple games to buy Bioshock Infinite. Then probably trade that in to buy Lego city undercover next. The latter I'll keep for the kids, Bioshock infinite sounds good for a few playthroughs but I don't see myself coming back to a game like that.

Btw the 6 minutes is for 20Gb, Killzone 3 at 41.5gb would be closer to a 15 minute wait.