Paul writes, "...So what does all this mean for the next generation? Microsoft seems to think that the future is digital distribution and does not see the failure of HD DVD is a relevant event to the videogame industry. Although on one spectrum of industry we're seeing a massive increase in file size with each game that releases, there is another growing section of the industry that does not rely on large file sizes to bring entertaining experiences for gamers. Xbox Live Arcade as well as the PlayStation Network have seen loads of games with a reasonably small file size that were released purely digital for download by a massive and growing audience of online game consumers. This is where Microsoft sees the future, and the download only world...."