We all know were it's heading. It's not a matter of IF it happens but WHEN it happens. 

Dreamcast was the first console that had DLC over the internet. This was last generation no big deal right?
This generation all consoles are litarally flooded with DLC. It takes time but things are changing.

So what's next? Digital Distribution I believe so.
Sony enables PSN+ users to buy full games through their psnstore. Owell at least Infamous 2 (2 weeks after retail launch).
This got me thinking what will happen next gen? Probably the majority of all games will become available both on disc and thru digital distribution. That's because the difference between DLC en DD is: DLC adds content while DD is a new form of content delivery.

DLC succeeds because it's optional. DD has to be optinal at first to be accepted.

Moving on to streaming on consoles. My bet is that streaming will happen at the end of next gen. Just a few games (but not arcade games or minis).
SO next-next gen hasn't any discs. All we have is DD and Streaming. By that time nobody knows we had little booklets in boxes so nobody complains. What is it EA? Ofcourse some gaming will be streaming only. Internet connections are pretty good. Just don't go wireless. In the I don't think we need DD anyway. The internet is reliable enough. 

After streaming is their something new on the horizon? What will happen? 
I don't know the answer. Sorry for that. But maybe someone else can see further down the line. I'll think about it in my sleep 8).

My imagination is at it's limit...I have no idea whats possible after this

Virtual reality?

as long as there are shitty games discs will exist, so you can resell those crappy games

We have demos and rentimg no need to resell in the future.
Not sure about vr as a way of distribution.
Maybe streaming is the ultimate way to distribute. It will only just improve in terms of speed. Only the devices will change first glasses, then brain interfaces.

there will be discs atleast for the next 10 years

maybe after that too as a form of writing digital distribution to disc after downloading the game


internet will not become common is less than that time and even after that many countries will struggle


coupled with the bandwidth restrictions and fair usage policies

and that if your internet goes down for sometime which is very common,ur game is lost