MrMac: We won't see large downloadable games this generation. The savings from going digital aren't enough for cutting you're supply by such an amount.
Next generation it's a possibility, but remember this
You're aware that Microsoft generally makes a loss on each console sold, and makes up for it through software sales?
Are you also aware that retailers make very little profit on consoles, because they too make up for this through software sales.
So the price of the 720 is higher, although I suppose games would be cheaper