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pbroy said:

You are buying the disc and the case, with a license. You are getting a free license or a free CD and case. You decide which one is free.

You are right about those other forms of media, but this hasn't been done before on a system wide method in home consoles. "Every Xbox One game you buy from theday one will come with digital rights." There is no fragmentation where if they choose to have it or not. This is a benefit.

How is taking away choice a benefit?  I think I'd prefer to choose between a physical copy I can freely share or sell and a digital copy that is tied to my account.  I think I can live with my digital versions not coming with a worthless CD and case.  They could even still put out a version with the disc and cd-key for people who want a digital copy but don't want to/can't download it.  They'd even get their 'free' CD.