i think sony/ms should do what they can to make digital distribution advantageous for consumers. a lot of money would be going back into developers if you cut out the retailer, distribution, and returns. some of that can go to pulishers and some can go to justifying an price drop to $40. that should spur increased unit sales which would be good for developers.
furthermore, with the services like xbl and ps+ i think msony should lower their platform royalty. the more games they can get on their device the more compelling the device becomes. shifting their business plan to profit on hardware and services moreso than game unit sales should shift to balance of power from mobile back to console for developers looking to profit off of their unit sales.
