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I have no problem with digital distribution. Even if the DRM services go down, games can always be cracked for future use
But that article is hardly a point of support for cloud gaming. Cloud gaming reintroduces the middle man that was cut out with digital distribution.
I was referring to the death of physical distribution and how it can't be relied upon. It's not a good thing when it puts a company under.
But the beauty of cloud gaming is that it coexists well with digital distribution. We're not talking cloud-exclusivity here. Every game that comes out on the cloud will have a computer counterpart you can buy instead. (It's easy to port a PC game to the cloud, because it'll run off a server on the cloud.) Whether or not it will have a console counterpart is another story.