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As for the delivery of games, I don't think boxed games are going to disappear within 5 years, as Lorne puts it. Downloading a 8 gig game is just not feasable at this point in time. Internet connections are just now coming around to 100 mbp/s for home connections and that's not even the standard, those type of connections are reserved for the elite with lots o money.
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I downloaded Bioshock and that was six or seven gigabytes. And my internet isn't all that fast; I just let it download over a night or two.
I think big downloads are certainly feasible. It may bug people that they buy the game and can't play it RIGHT AWAY, which might put off twitchy adrenaline junkie gamers. But most normal people would be fine with it.