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Pretty much physical except for PSN only games and PS+ games. I have 33/298 available gigs left on my PS3 and that's from only downloading the PS+ games and PSN games, so I don't want to start downloading every game I play to my hard drive.

I will be digital only on my vita, however. I bought the retail games at first but realized quickly how inconvenient it was to have to find them and change them if I wanted to play another game.