Online distribution of games and music came of age years ago. Companies like Vivendi are the reason that we can't utilize it unless it's illegally like file sharing.
P2P file-sharing is actually legal, like emulation. The RIAA is trying to clamp down on the entire concept, but they've been foiled at every legal turn. The actual acquisition of something you haven't paid for is illegal, but the RIAA can't prove that. It's an assumption of guilt to say "everyone downloading mp3s on service X is a thief!" They can't prove these people aren't obtaining their one backup allowed by fair use laws. File sharing's quite legal.
What stuns me time after time is that rather than read the writing that's been on the wall in 12ft high letters written in blood for years and adapt, they'd rather spend millions in courts across the country just to keep the old status quo alive.
Well, it's like the mainstream media in the face of Internet journalism: they think they can ignore it and it will go away. While online distribution won't go away, it's not going to take the place of brick and mortar retailing, along with the distribution of physical media, for a long time. For all the coverage e-commerce gets, it's only something like 2% of all sales in the US. I'm sure that legit distribution services like iTunes have similar market shares, and I'm sure that Steam really won't make a dent in Gamestop's profits.
There's a long way to go yet before we can cut out a couple layers of middleman.