Why doesn't MS make the Xbox One digital only?

[hsrob]

Two main issues, they've been mentioned above but dismissed too easily by some.

1. A fairly large chunk of the market doesn't have the internet cap and/or speeds to support digital only, this is particularly an issue with expanding into new markets. The sample on this site is very skewed towards people that have an interest in technology, generally speaking, and therefore have availed themselves of the best/fastest services in their area.

2. Traditionally retailers make next to nothing on hardware (several dollars only), they make the majority of their money on software. Try convincing retailers to carry a piece of hardware for which they are only guaranteed several dollars profit, it's a tough sell. Several major retailers in Australia simply refused to carry the PSP go.

Now both of these things can change but we aren't there yet for enough people. People's internet will get generally faster (+higher caps/unlimited), that is obviously just a matter of time. For my second point, retailers could be offered a significantly larger percentage of the hardware sale, this would obviously affect the hardware manufacturer's bottom line but they should be making large savings on software manufacture and distribution which could offset this.