do we want that from nintendo

and merchandise will only be relevant as far as they are popular

they will either have to change their business practive like getting involved into other tech devices or become a software company

would love an arcade comeback though

love the old days of card games too

I put all of my retirement savings into stocks for GameStop and Blockbuster.

While digital distribution will no doubt grow in the coming year for the video game industry it still has more limitation than music and books. Music and books aren't very large in data when compared to games. I only have about 10 gigs in music yet that is probably almost 100 albums. 1 video game (especially the main titles) can reach past 25 gigs now and usually average at least 5-7 gigs. With tons of countries that have data caps on internet I don't see digital distribution of video games taking off. Sure there will be the WiiWare, XBL, PSN titles that are smaller in space but for a regular title I see many issues with just going all digital. Nintendo won't go digital anytime soon for their main titles. Perhaps Sony and Microsoft will offer older titles (titles released early on the console) for purchase in the future. I just don't see it coming to fruition anytime soon for the major titles.

I was under the impression that the retailers (at least, larger retailers) are compensated by the publisher if there is an official price cut and also if any unsold copies remain, they can return them. However, I admit I'm going off of memory...if someone connected to the industry could confirm/refute my statement.

Probably, but i dont think anytime soon imo.

I mostly buy my games from Amazon. I did buy my 3DS and Tom Clancy's Ghost Recon: Shadow Wars from GameStop yesterday. But that's only because there's a GameStop within walking distance from my job. I needed something to do on my lunch break aside from eat at my desk and I figured it would be a good idea to leave my cubicle and get some exercise and fresh air so yeah. lol. I'm probably going to shop at that GameStop from now on and order online from Amazon/Best Buy/Futureshop less. Unless I can get something cheaper online. If I can't walk to a GameStop, I'm just going to order online and wait a couple days (Amazon Canada doesn't have the 99c Release Date Delivery. Even if we did, I would just wait the extra 2 days though). Fuck it. I'm lazy. lol. The proximity from my job is the only reason why I even bother to shop there.

Oh and for the record, I went for the $40 new 3DS game instead of the $35 used version. The brand new version was all the way at the bottom of the shelf while the used version was higher up. lol. I purposely sought out the new version because I think GameStop's policy of charging only $5 less for used games is bullshit. When chances are I bet the poor sucker who traded the game in only got $15 for it. Maybe $20 if he/she is lucky.

I'm not sure you understand my point.

Digital distribution just had to grow to the point where it takes 20% or even less of console games sales and a lot of retailers will go out of business...

As for it being older titles you might want to check what is up on the PSN these days.

Infamous 2 was on the PSN the day of it's release.

I've bought Borderlands, Infamous, Record of Agarest War there.

Assassin's Creed brotherhood and Dragon Age origins are on the PSN too...

And while they may be big ( Borderlands and all 4 DLCs is 9Gig) I just watched the HD version of Priest and it was close to 4 Gig...

Sure not everyone has the bandwith but enough do to make the switch and then your retailers will go the way of the Dodo and you will only find the latest AAA releases at your local Wall Mart or will have to order your physical copies online... So no physical media won't disappear ( the same way physical books aren't disappearing either) but you won't be able to find any store selling the games you want close by...

Amazon, Ebay, ozgameshop/365 games and  many other online stores offer games at much cheaper rates than the old bricks and mortar retailers.

Distribution centres with large warehouses beat bricks and mortar retailers hands down.

Down, down prices are down and staying down! Gone are the days of spending over $60 per game. App stores can offer mini games for as little $1 or $2 a throw. 

I see your points.  I might have not worded my sentences the best.  I know Sony and Microsoft are pushing it more than Nintendo at the moment.  I believe the major stores like GameStop probably won't start closing stores till middle or end of next generation.  I believe digital distribution will eventually take off (especially if companies remove the data caps).  USA game stores will probably be affected first due to more broadband with most companies not having caps.  I believe digital distribution of games is about where Netflix was when it first started off.  Now that Netflix is a serious contender cable companies, movie rental stores, etc.. are now dealing with loss of consumers.  Basically GameStop is trying to get into the online store but most people probably find better deals on Amazon, Ebay, etc..  I believe GameStop will fall the way of Blockbuster (not able to adapt to changing times and when trying to adapt fail at it).

App stores via tablets/smart phones offering mini games and bringing in large profits to developers at minimal costs. Tablets and smart phones with the app stores offer the latest mini games to consumers at the lowest price points. Companies/businesses need to adapt to changing market dynamics or go out of business.