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I'm pretty sure that this is coupled with the great discounts we have been having on digital goods on PSN and Xbox live.

I dont think they sell as much as retail in those days straight after launch while the price is still set at max on near max. I believe that digital sales spike when you have price drops. The consumer doesnt see the same value on a digital good as they see in a physical good. But with the right ammount of value reflected on the price, i am sure the consumer embraces it.

In my particular case, i have played mainly on the 360 for 5 years and i didnt buy any digital games aside small Xbox live games. When i changed to the PS3 last year, i have bought about 8 digital ( games that are on retail) games. Why? Price makes all the difference. PSN has great sales.