There's a lot of talk about how the market for buying/selling physical copies of games will dry up in the near future. While I'm not categorically saying that it will not happen, I have a hard time buying into the idea, and here's why...
Since the mid-to-late 90's, people have been able to download music off of the internet. It's been a decade (a relative eternity in the entertainment industry), and yet people still buy physical copies of CDs. While the market for physical albums has declined, there are some people (I'm one of them) who like having a physical copy for back-up and posterity.
In the film industry, rental services have been the norm for many years. Nowadays, paid rental services like Netflix allow rental via mail and unlimited streaming via the internet. Services like Redbox allow vending machine style rentals. These approaches have revolutionized renting, made it easier and cheaper. On top of this, people can pay to download movies on iTunes (if they want a copy to keep) and it's cheaper and more convenient than going to a retailer. You can argue that the DVD/Blu-Ray offers a higher quality experience than a digital copy, but in my experience only serious movie buffs care about that.
Despite digital distribution, there is a strong contingent of people who like to have a physical copy of an album/movie for the sake of back-up, posterity, and the fact that it looks nice sitting on a shelf. The same is true for video games.
While the market for physical copies of console games will, surely, go down in the future (we already seeing it on PC) there is still something to be said for physical copies. If we ever embrace a fully digital distribution age, I believe that it is a good ways off. To reach that point, all people like me will have to age themselves out of being the core buying age in the market, and I'm only 26.
Maybe I'm just being hopeful (I personally don't like the idea of all-digital), but I think there will always be a market, even if it gets really small, for physical copies of games. IF we were to reach a all-digital entertainment age, I would say that its at least 20-30 years out.
Agree? Disagree? What are your feelings/opinions on digital distribution as the future of gaming?