If PlayStation became a service, like Steam, that might make sense, since there would be no need to worry about console sales.

If they just want everything to be PS Now, that on the other hand...

Hint: You don't own your physical media either. Ever read your EULA?

No one is coming to take away your digital content, period, just like how they aren't taking away your ability to play the discs (which they can, per the EULA).

It's fine that you like physical, but don't completely discount digital. Steam alone has shown that digital is very much a viable option. People said that Steam was evil for taking away physical content on PC, now 97% of PC sales are digital and revenue has never been higher.

The prices on XBL/PSN are a consequence of the current situation where they have to support the retailers of physical media as until physical media is dead they are still reliant on them to push the hardware and the majority of games, if they compete with the retailers by undercutting RRP then they destroy their own physical retail partners. This was one of the big reasons why MS just recently brought out game codes that retailers can sell for digital copies, allows them to push forward on the digital front without having to destroy the outlets they are still dependent on.

Ownership is dying. People don't care about owning things anymore as long as it has affordable prices and works properly. Gamers seem to be the last wave of consumers that care, it is just a matter of time until they finally accept the cloud in the future. Netflix is huge, Hulu is huge, Spotify is huge, iTunes has been forced to do streaming and bought Beats in large part for their brand and streaming service. The age of people owning all this content is over.

Digital distribution has revolutionised PC gaming, consoles have not embraced it and console sales are massively down this gen as a result.You have to move with the times, music has done it, movies are doing it, console gaming will do it or die a slow death.

The last two boxed PC games I bought.- dragon age and SC2 both required you to register your copy thus making it impossible to resell anyway.DA registration was mostly so you could log your lame achievements but I digress.

regardless of mainstream there will always be a niche.New vinyl record sales rose 40% last year, now at their highest since at least 1991.People still putting out indie games for the 2600 NES Snes Gen etc (original carts).Point is big AAA games may be digital only but there will always be an indie physical niche

This would actually make it more likely for me to continue gaming. I already switched to full digital. If, in 5-6 years when PS4 becomes old I were to be presented with an opportunity to play games just by buying a $40 controller instead of a $400 console, I'd be all for it.

If this happens I'm doubting that Sony will be the ones leading in the cloud.

Amazon, Google & Microsoft are far ahead in cloud infrastructure.

And 1 day people will realize what they have lost. Vinyl is regaining popularity, CDs refuse to die, blu-ray sales are still going up although slowly and print books will never disappear. I doubt the cloud will ever fully take over. It works great for things people didn't want to own anyway, physical rental is what's really dying. Netflix and Hulu are mainly competing with cable TV, movie network etc after killing of rentals.

I have no experience with Spotify, I'm happy with CDs and radio. No need to have internet at my pool, damn wifi hardly reaches the living room. The only time I have listened to internet radio was while playing ets2. Driving a truck through Poland feels more immersive while listening to a local radio station.