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Machiavellian said:

Console games do not make the majority of their money from digital sales, its retail.  Yes, every console has a digital market but how many RETAIL games come out day one.

And whose fault is this? No one is forcing publishers to do retail. They do it because it is worth their while. The digital future that would have eradicated the evil of used games and saved the industry if only we had let Microsoft bend us over and have their way with us is already here, right now. If used games are really killing you, stop cutting your own throat by releasing at retail and do digital releases only.