This isn't a reply to anyone in particular, but (incoming wall of text by the way):
I don't see what's so different about the console and PC markets that means most PC gamers are fine with 99% of their games being digitally distributed but console gamers are less accepting. Is it that their internet connections aren't fast enough, their hard drives aren't big enough or what? I think, once brick and mortar games outlets finally die (in the UK we only really have Game (which very nearly died), HMV (which is dying) and one aisle in the bigger supermarkets), Sony, Microsoft and Nintendo should take some cues from Steam and PC gaming in general and make digital distribution viable for consoles. I think it would be relatively easy, really. They'd need:
- To allow people to fit whatever size hard drives they want in their console (or connect to it with a high-speed link like eSATA). This is 2013, we shouldn't be getting excited about 500GB consoles when a modern gaming PC has at least one 1TB drive. I understand that the PS3 is old hardware and all that but why Sony didn't give the hard drive bay just a little bit more room to accomodate the thicker 2.5" drives I have no idea. It's not exactly rocket science that higher capacity drives that don't exist yet might be a couple of millimetres thicker than the lower capacity drives on the market in 2006. As for Microsoft and their proprietary hard drives... My face just isn't big enough for all this palm it's getting.
- A method to allow people to buy games from any internet access point and download them to their console at home while away from home. This means people at school or work can buy games and download them so they can play when they get home; this would largely cure the whole 'I can't just go out and buy a disc' thing.
- To allow pre-downloading of a game so that it can be installed and ready to go when the release date comes. Maybe they already do this, I'm not sure.
- Automatic updating like PS Plus has. There's nothing more annoying than having your console sitting idle for a week, turning it on for an impulse play of, say, BF3 and finding a 1GB update waiting for you. Let the console do that at 5-6AM so it's always ready to go. Again, it's 2013, this should be standard. Well, a standard option, as some people have download limits.
- Competitive pricing. There is absolutely no fathomable reason as to why Need For Speed: Most Wanted is £60/$60/60 Euros on the PSN store when it's £40 on disc, £30 at full price on Origin and available for less than half that fairly regularly from other digital distributors. Are PC bytes cheaper than console bytes? No.
If they can make digital distribution convenient then they've got all the DRM they need right there. Steam is the most widespread form of DRM in the world and how many complaints do you hear about that compared to TAGES, Starforce, First-purchaser codes and always-online DRM? Hardly any! But do I care that I can't resell my copy of, I don't know, Gish (the worst game ever made)? No, because it cost me next to nothing. Had it cost the £12 it probably would've cost as a console game I'd be annoyed.
TL, DR: Physical game retail will die eventually (how many CDs, DVDs and/or Blu Rays did you buy in 2012 compared to 2002?), I'm willing to put money on it being within the next console cycle. The console companies should be looking at what Steam does that makes it indispensable to most PC gamers rather than invent silly new DRM methods. Oh and they need to design the new consoles accordingly.