There's a couple of factors that vector in, though (since I work in this market, I've been to these meetings):commasplice said:When movies slowly transfer over to a purely digital format - regardless of whether a portion of Americans/Europeans can affort to buy the appropriate machines to watch pure digital movies - then console/computer games are not far behind. The saved cost of digitalization will win out against the costly physical copy.
Regardless of what you say about saved cost for production, there are still people who want to buy physical copies. There is still demand. You're assuming that, if game distribution switched to a strictly digital format, all of the people who buy physical copies will switch along with it. This is not necessarily the case. I, for one, would stop buying games altogether. I'd play them at friends' houses, if at all. Ceasing production of physical copies may cut cost, but it would also cut profit.
It's largely dependent on the group that corporations concentrate on. Most gaming companies are not targeting the guys who have barely enough money to buy one of their big titles, but people who have a disposable income. I know that - despite Hirai's latest rant - Sony is focused on the players who are online buying online games, DLC and/or movies. The Blu ray is hardly talked about in these meetings.
The other issue is that even while there's a market to be had, corporations don't always cater to them or care about them. Demand of physical copies is considered a small customer group. I'm not happy about it, myself, but they are driven by C-level decisions. And C-level decisions aren't always intelligent or even logical decisions. Right now, there's a corporate focus on how to get things from a physical, pricey format to an easily-hosted, digital download format. They also don't care about sustainability of multiplayer games. Companies like Activision/Blizzard and EA (big distributors) and their buddies THQ, Square and Valve don't want to produce physical copies anymore. They are only focused on eliminating the middle man right now.
I'm with you - I like physical copies. But I'm also not going to lie to myself when I'm sitting in the midst of corporations looking to go entirely digital. Especially in the movie/music business. It's all upper management/stockholder pressure right now, so the people in the lower echelons are being ignored in our attempt to keep the entire market in view.