While true, some of us don't live in a city...it costs me gas money to go to a store. The ISP is fixed rate.
You can order games online. I guess it wouldn't be too bad to do that for some games, and to download others.
It depends on the territory. In the UK you can get unlimited broadband from £10 / $15 a month (cheaper if you get TV as well) and there is no fair usage policy (i.e. it really is unlimited). I have a 40Mbps connection and regularly download over 1TB a month (I checked my stats and I download 122GB just today). The biggest issue with digital distribution is that consoles have limited storage capacity and unless they include a 2TB drive as standard you're going to be constantly juggling games, especially if you're looking at 30GB+ games. That's why I was very surprised that Nintendo included barely any storage with the Wii U (just 8GB for the base model, with only 3GB available to the user) - it pretty much rules them out as a serious contender.
Physical media still has a place but I expect by the end of the next generation that digital distribution - like with the PC - will be the standard, provided Microsoft and Sony don't skimp on the storage.
That too. Digital distribution is the norm for PC because console gaming just dominated the physical game market. Also, most PC games are 8 GB or less so size isn't an issue. You can download 8 GB in under 2 hours with a 10 Mbps connection. Hard drive space is less of an issue with PC gaming though. Most gamers have large hard drives and if they need more, they'd simply throw in another drive. I really hope the next generation doesn't inflate the size of PC games.
Anyway, we better have affordable Internet plans with unlimited bandwidth by the end of the next generation. Just imagine something like Google Fiber
. Unlimited Internet at gigabit speeds (1,000 Gbps [125 MB/s]).