The dawning horror for the console vendors is that the change is already happening around them and on every iPhone, iPad, Samsung, Android, etc device. These already have digital-only distribution. These already have very high-quality GPU's that push almost as many triangles as an xBox 360 or PS3, and are on a faster product-iteration-cycle. Some of these - iPad3 and Samsung Galaxy Tab's - already have higher-resolution screens than your 60" HDTV and many people are using them more hours per day and spending more dollars per device than they ever did on consoles. Yikes, if I were still in the console biz, I would push like hell to move a little faster than updating hardware every 7-8 years and doing poorly with software.