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I stay retail, mostly because of price. I have bought a few digital titles when they're on an xbox live sale though. It will stay this way until the prices are more competitive. I've picked up a physical copy $30 cheaper than online at times... At launch. Not to mention no chance of trade in... Something I don't typically do but.... Options.

Packaging, shipping and retail costs being removed should be considered and the prices should and will come down. I'll happily wait patiently until that happens.