Leading industry analyst does not expect retail sales to be fully abandoned.

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According to "Money for Nothing, How Ancillary Revenues Can Extend The Console Cycle", a new report by Wedbush Morgan Securities analyst Michael Pachter, the growth of digitally distributed software on video game consoles is expected to be exponential in the near term.

However, Pachter does not believe that retail sales have had their day, predicting that by 2019 digitally distributed software will still only account for 50 per cent of sales, with consumers unwilling to fully abandon physical media.

To enable such growth in digital distribution, Pachter predicts that console systems will see a growth in local storage to around 1 terabyte over the next ten years.

Via Gamasutra

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rbevanx's Avatar

rbevanx

Well the downloads on PSN, cost more than the shops, and people like collecting the actual games.
So I can't see digital distrubution taking off, unless they are cheaper than online and shop retailers.
Microsoft do GTA expansion on Xbox live only, which is the only way digital distribution is gonna take off.
Posted 18:00 on 30 June 2009