This is incorrect... I think it's pretty safe to say that Xbox's Shadow Complex is a retail level game and there are others. I also think that PSN has retail level games that are download only like Wipeout HD.

Those aren't retail titles though, they are Arcade titles. If you don't want to make the distinction between them then fair enough but you just said that PSN didn't have them two posts now ago and now you're saying it does.

You should stick to PC games, it's apparent you are guessing in console issues.

I'm making an effort to be cordial to you in this topic but I won't continue if you persist in being rude.

Of course Sony wants to do it but it would be foolish to go as far as Xbox will have to... They don't have to because they have Blu-ray which allows them a lot of time to be patient.

This doesn't make any sense, what does Blu-Ray have to do with game distribution?

Xbox on the other hand has a 2 fold problem, no large portable media system

They don't need one, games are barely breaking the DVD9 barrier and certainly they don't need 50GB discs this console generation.

This will most likely be attempted with a large hard drive release at some point, and the current big "Games on Demand" push. MS will most likely be the most agressive out of reasonable understanding of past business practices, and their need to do so lacking large scale portable media solutions (to sell at retail)

This all opinion and not relevant to the topic as you have no data to support it. There are literally less than 20 Games on Demand titles and every single one of them can be purchased at retail outlets. Microsoft can't aggressively push into Games on Demand as they are dependent on retail outlets for revenue. You would know this if you looked at the prices of games offered on Games on Demand, they are all higher than retail due to retailer demands as posters have discussed previously.

I see the PSPGo is a first run at Apple's Iphone. Expect the phone part soonish

That's great but again, that's just rampant speculation without any basis in reality. When it's announced, then go ahead and make that point. Until then it's just a dream in your head. It's also a download only device. The PSP 4000 has not been confirmed yet and the older PSP skus are going to be burned off in favor of the Go according to Sony. So it's obvious Sony envisions a digital future too but like Microsoft, they can't just skip ahead to that part. It will takes the better part of a decade for digital sales to encroach retail and that's assuming the industry finds workarounds for the many problems it faces.