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kitler53 said:

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.


As long as the consoles does not have the advantage of the smart phones "free" advertisment (Hey,! Buddy, look at this game I downloaded for only a few bucks) I imagine the developers are afraid of going all digital. They still will have to have retailers help them sell the console and if that sale is the only one they get(ie. No software sales) they probably want more revenue on the console and will not show of the hardware as much as they do now. It will be equal to a toaster or a keyboard.  

When Nintendo Fusion comes to market you will be able to impress your buddies with your handheld/stationary console games and Nintendo will not be so dependant on retailers anymore, making it possible to go all digital. 

There are more things to consider when going digital, competition in prizes is eliminated and you will not have any bargain bins in shops where you can find you favourite game for a budget prize.