What if MS offers games (digitally) at a lower price than retail stores? Or, what if retail stores up their prices to compensate for lost revenue due to many buying digital? There are so many scenarios that can play out in this. A lot of people like to hate on MS, and I can maybe see why, but this idea that MS will say, "deal with it... buy digitally at full price and like it" is naive thinking.
If they do go this route there will be worthwhile incentives. Just like when they said broadband only for the first xbox, and they had xbox live in their hand, they will have an incentive for introducing digital only.

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