2) Executives with their talk of streaming games via cloud computing and digital downloads SEVERELY overestimate the general populations access to sufficient internet speeds. I have a 25Mbps connection, but most people are closer to the range of 5 - 10. Which means to download even a 7GB game takes aaaaaages.
I have 8Meg, and it's more than fast enough for that. I have a couple of 1.5TB drives and a Usenet connection...
I'll admit downloading StarCraft from Blizzard's was painfully slow, but that was an issue with their bandwidth and not mine. Good job there were other torrents with it. If say MS were to go this route, they would have to have the bandwidth for it with plenty of peering.
On most games, much of that games disk usage is taken up by FMV. I would really hope the nextgen consoles have enough power to use ingame engines rather than continue to rely on FMV. I've browsed X360 images and quite a few have FMV from the ingame engine such as for demos, intros etc.
QUOTE3) This is my number one issue. The loss of physical media means abandoning our current game libraries, which would be awful, but more than that it means losing control over our content. Lets say I download a full-length digital retail game.