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I would pretty much do what you describe, retro gaming all the way that is. I am also a collector.

Still, I would like to play new games so I would probably still have a PC or something to play them, but my gaming budget (at least 85-90% of it) would be devoted mostly to completing my collections.

I will never pay more than $20 for a digital game. Even $20 is too much actually ... I have only payed that much like twice for digital games with Minecraft (worth it) and State of Decay (big waste of my money).