Blu-ray is just as dead as DVD.
Digital / Cloud is the way forward.
I would agree with this, but not at this time.
With running out of spectrum and use exceeding ability by 2014 (cell phone, mobile internet), and our capitalist system causing (not wireless) data caps, high cost of broadband, slow internet speed (vs other parts of the world), unwillingness to to cover parts of the country, etc.
It's not as soon as you think, at least in the United States.
Sony and MS have already started a hybrid model, a lot of games sold both electronically and physically. I see this trend going on for the next 5-10 years.
In fact Sony mentioned PS4 will still have a drive is due to our infrastructure situation.
Also, there still people that like to own physical copies.