This is going to have a very interesting effect on the console market if it becomes reality. For one, it'll destroy the used games market. But also, it will make the impulse purchase of games much easier, and it'll drastically reduce the aging process for games. No longer will a game's sales be tied to shelf space. The focus on sales right after a game has been released will decrease, which I think is a good thing in the long run.

I think that with the shift of the Wii and Wii U towards the casual gaming market, there's definitely space for a third competitor in the "serious" gaming market. It'll be interesting to see how this actually manifests itself.