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VAMatt said:
Barkley said:

Surely digital games are more of a threat to GameStop than psnow? With the digital ratio climbing continually these past years.

Digitial in general, both purchase and rental, and killing GameStop.  

The_Liquid_Laser said:

Yes, those are a big threat too.  To me it's all competing with GameStop and therefore a bad idea.

I mean, I am sure it is making them good money now.  But one day GameStop will be very small or totally out of business.  And then Sony is going to be asking where their customers went.  (All of this applies to Microsoft too.)

Blockbuster was killed by digital distribution of movies.  Almost all record stores were killed by digital distribution of music.  Those industry all adapted, and the major players in  movie and music production and distribution are still the major players.

1)  Blockbuster was not killed by digital distribution.  It was killed by a combination of Redbox and movies by mail service from Netflix.  Neither one is digital distribution.

2) Record stores actually were killed by digital distribution of music.  The music industry has not recovered.  Seriously, look at the numbers if you actually care.  The music industry took a huge nosedive during the 21st century and now it is just a shell of its former self.

The digital distribution model can make the video game industry plummet in the same way that the music industry did.  No video game company wants to go the way of the music industry.