The movie theater idea for games.

Physical copies come out six months after the digital release.  You could even release the download code in the store. 

Download section and Disc section would be clearly marked in the store.

I know I'd wait for the physical copy.

Yeah, nothing wrong with DD.

meh I prefer physical copy

I fail to see how that would increase profits. Please explain.

Online distribution eliminates the retailer profit margin.

^ True, and I guess in that way it would make sense. But that has nothing to do with the movie-model, and it would be stupid then to sell download codes in stores.

retailers make $12 to $15 on any given new game.  So by eliminating the middle man (retailers) that profit can be given back to the publisher/developer instead of companies like best buy, or gamestop.  It also eliminates the cost of of the physical product (although that is pretty much neglible) as well stops the hemorhage of sales that goes with used game sales. (at least until the physical product arrives.) 

To answer the question, yes.  I think it would improve profit margins quite a bit.  I for one would be much happier with digital copies of my games (especially handheld games, I hate bringing craploads of games with me everywhere, it would be easier if it was just all on the freaking handheld!)

agreed, the download codes in stores wouldn't be any different from offering a physical product.  However, I think the core idea (offering products for digital downloading before physically in stores) has some merit.  I think this is something publishers should look into.

Yeah I'd be happy with a DD-only console too, provided they offered discounts every once in a while.

I hope it's possible to download every the game during the next generation, though I also like the sometimes lower prices offered by retailers, due to competition among them.