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Azzanation said:
Adding to my post - Those saying physical is cheaper or the same price of digital is simple. Digital on consoles is still expensive because companies want you to buy the store copy first because its cost them more to write on disc and supply the stores with. The moment we remove physical copies from store shelves digital will take off and if you have ever used Steam before you will see the benefits of there sales they offer every week.

You need competition. How is removing games from store shelves helping anyone but the console manufacturer's own stores? If there is only 1 shop to buy your games from, prices would be fixed, they kind of already are (see Killzone Shadowfall, a launch game, £35 on PSN, you can get this for a £5). There would be no companies competing for your money for pre-orders or 6 months down the line once everyone has forgotten about the game, it'll be £45 and it'll stay £45. The option and solution is to allow retail stores to sell digital codes, and because there is no disc, no returns and no exchanges on these code, it should be cheaper. If I goto GAME in the UK and see a £40 disc game and next to it a £35 digital , I might think to myself "Yeah, I know I'll play this, I might as well just get the £35 digital code instead." Once digital codes are available like this in stores, PSN would have to compete against them, reducing the cost.

The rest of your points are valid from a convience point of view, except the server thing. Regardless of if you have a disc copy or digital, if they turn the servers off, you can't play. 



Hmm, pie.