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I like to own physical media, as I can lend it out or sell it later. Prices are often lower too. Also, I grew up going to the game store, reading the back of the box, and carrying my new game home. I still enjoy that process.

Digital media is much more convenient though. I don't have to worry about swapping out game disks, storing those disks, etc. I do occasionally buy digital games now, if I am totally confident that I'll want to own that game for at least several months, or the game is cheap and would have little resale value anyway.

If there were a way to temporarily (lend) and permanently (sell) transfer your license to digital game software, I would probably make the switch completely.