This article brings up a ton of great points that will have to be discussed as time moves forward. However, I think some of the problems discussed will certainly be solved, or aren't really as bad as it sounds at the moment. For example, prices of retail games are still basically fixed by the big three, with few exceptions such as games with peripherals or bargain price games. Most releases stick to the $60 or $50 dollar range depending on the console your buying for. (American Dollars) While stores can certainly throw sales and such, prices are still set from above and basically followed by everyone else, reducing "competition" from the get go.

I also think it is difficult to visualize a pure digital service from a company like one of the big three by only looking at their current digital distribution pricing. Current models for downloadable games are simply extra money and fairly unsubstantial compared to retail sales. So, there is little merit in price drops and such, as they are simply a drop in the proverbial bucket anyway. Once digital replaces hard media, I imagine companies will drop prices on new titles quickly, in order to maximize profits, based on supply and demand. People who want the game asap will pay full price, while those willing to wait will see price drops much like retail games, since that is how a company makes money.

The only major problems I foresee with digital distribution are the lack of physical objects to purchase and the increase in piracy and therefore copy protection that will go with that. Most games are still received as gifts, last I checked. For a lot of people, walking out of a store with a jewel case and disc in hand is much preferred to receiving a voucher to redeem, a point card, or even just a digital transfer from a credit card. While gift cards are certainly growing more popular, I feel like grandpa and grandma would be less willing to slap down $60 for a piece of paper than they would for a hard plastic case.

Also, companies are obviously worried about security now, and I imagine they will each have their own irritating security system to protect their software in the future when everything is already digitized and ready for quick and easy transfers.

You make some good points in the article. Especially the bit about physical prices and digital download prices. There are several examples where the digital download prices far exceed the physical price: The Prince of Persia for example sold for $29.99CAD in stores half a year ago, but at the time digital download were still $49.99USD (they have since dropped to $29.99, still more than what I'd pay to get a boxed version which would make a far nicer gift).

You also hit the nail on the head about who controls the pricing in digital downloads. We've been privy to discussions with digital download companies which admit that EA for instance, has absolute control over the pricing of games and is not interested in discounting them at all. At this moment digital downloads are one area game companies have the upper hand as far as control over their pricing.

I want a real disc. Is that too much to ask for?

Seeing as Blu Ray is next gen, if Microsoft jumps the gun and goes entirely Digital, it could be bad bad news.

I prefer digital downloads because here in Canada, a decent retail outlet to buy PC games is really hard to find. EB games is terrible.

I do like have a physical manual though, and I can certainly see how it would be real bad news over all if only 2-3 companies controlled game sales. Then we'd probably be forced to pay additional outrageous $10+ "convenience fees" when you download a game, like the Ticketmaster monopoly does with concert tickets sales.

I suppose in a way these digital downloads work both ways. On one hand you have the fact that current storage media (DVDs/Blu-Rays etc) would not be a space issue any more if we pushed for more digital distribution, but on the other hand I don't think there would be as much of a price range for games using digital downloads. You couldn't exactly shop around any more.

I do agree with people in that I prefer getting a case and a disk with my games when I buy them. I like looking at my shelf and seeing all of my games rather than having to turn my pc/console on and look through a list