With the rise of digital content in the gaming industry including not only DLC but full retail games on PSN and comming soon XBL, some may question the future of companies such as Gamestop. Some may think that Gamestop is in denial that the gaming industry is being taken over by digital download just as the music and entertainment industry. While digital content continues to have a negative effect on companies like Gamestop it will not make them obsolete any time soon. If all retail games were to release as download only developers would charge you full price for an un-resellable, completely controlled product that would cost them less to produce. Essencially making games into more of a service rather than a product you could physiclaly own. For example, a PSN title can only be downloaded 5 times before you have to repurchase the content. Only the developers benefit from digital content as every one who wants to play the game must buy a fresh copy, not a used game, not one that you borrow from a friend, giving devs total control over distribution as well as pricing. If Sony decided to use the PSP Go! as a next gen platform (making the UMD obsolete) and releasing all new games as digital download only, Gamestop could have refused to support the PSP Go! since they could no longer sell PSP games. Sony knew they had to keep the UMD not only to keep current PSP owners happy but retailers aswell. The same goes for console game distribution. Also keep in mind that not all gamers have access to the internet and still prefer some place to shop and ask questions about games before they make their purchase. I do believe digital content is the future of the industry, but there will always be a market for physical media.
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All i have to say is "Vinyl Records". Didn't they stop making those a while ago and yet they are still very popular.
Digital Downlods will never completely take over. Not for decades at least. People are very materialistic and want to have what they own. I sometimes forget what I have downloaded. Heck, I can't even keep track of my tivo sh!t.