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First of all I'm a Nintendo Fan and frankly I won't be buying an Xbox one or a Ps4. My wii u and 3ds will be my only game consoles next gen and will just play the AAA games on steam. With that said...

The future is digital people. I usually buy my pc games digitally since there's no real reason for me to have to drive to the store when I can just download it from steam on sale. I used to be a physical disc only guy for consoles with huge shelves full of games but traveling with the 3ds helped me see the beauty of not having to carry around a crap load of cartridges around that I could accidentally drop somewhere. I've bought quite a few digital games that are available in retail. The idea of being able to switch between my games in my library is awesome. Honestly, I took all my ps2 games ripped them then placed them into boxes in my garage. I play my ps2 games on my pc now with an emulator. It's just so convenient.

All they'd have to do is lower the price of the digital games like how steam does it and people would gladly switch. I've bought a bunch of Wii U games digitally (that I definitively knew I was going to play for a long time) because of the money back incentive they had. I plan on buying animal Crossing digitally too since I know I'll be play that game till the end of time.

Only thing I have a problem with is the always online thing but that would go away if we all had digital products since they wouldn't have to worry about rampant piracy. It was already said the you can lend your game to others as long as you don't try to play the game while they have it installed their Xbox one at the moment. Why are people still bringing that up as a negative point?
With Ps4's push to cloud gaming we would always need to be online to game anyway.