Factor in what cost? PSN is free =P jokin aside. 

I dont think my mind will compute with digital downloads. I need somthing to hold and touch... like gurls ;]  But what if say for instance like MGS4 does come to Xbox360, 360 owners would have to download 50gb? thats like 83% of the Pro HDD and 42% of the Elite HDD.  I mean sure you'll probably be able to delete it off your HDD and redownload it again but think of your internet company bandwidth :S ...i have a 60gb bandwidth cap.  I read that FFXIII will also be a large PS3 game meaning itll be a large Xbox360 game as well.  Games are getting larger and im not sure if majority of internet companies are willing to increase our bandwidths just for Xbox360. 

and curious how much can you save from a physical media box to digital download? i can see them slimming off $5 off the regular price. A dvd case is like $.050 and how much to print the cover and manual?

for the 360 its not so nice as the ps3, bigger harddrive are more expensive way more expensive.

@ V-r0ck - That's exactly what I use to say about music, now I don't even use CDs anymore, I download all my music.

To answer your second question it depends how much they can get away charging and make the most total $$, they might charge just as much as retail or much lower. But I don't think lower for now since retailers will make a stir.

Although we may not save much, if any, the publishers will. Though the case, disc, etc, and maybe even shipping is not that much, the retailers take home a large chunk of the retail price. <- I'm not sure about games, but I know on average a retailer makes about 25-40% of the $$ a non-discounted item. <-They also often charge for good shelf position on top of this.

Fixed. 

Indeed DMeister and most people say Xbox 360 is better than PS3 cause its cheaper,and while being lower quality,offers most features that PS3 has.

But my opinion PSN > Live

 And one would probably be wrong. I made that mistake once with Direct2Drive, never again.

I'm not paying full retail price for a download. $15 is too much for Xbox originals if I can pick up a used physical copy for half that.

Notebook drive attachment come CES anyone? I think dl'able full games are great and are what I have actually been waiting for.

If It's not atleast 25% cheaper then I won't purchase it, and ultimately I will probably never purchase a downloadable game as long as a boxed version exists. I like showing off my collection.

Yeaaa, it makes a deep impression on hot women...

So, all transactions on XBL using Microsoft points.

Do PSN transactions use point, or do you just use local currency?

As I see it, Microsoft has the real win here, in that they can "Charge" full retail price, but since there are abundant opportunities to purchase Microsot points for up to 25% of face value, consumers will end up getting a discount on the digital download.

Key is, and will be, the ability to delete, and download again.

Secondary Key would be some kind of committment that digital downloads rights will allow you to use/play these same games when the "next" xbox is released.