The physical market is not in decline, Xbox Live product manager Pav Bhardwaj has stated.
"I don't genuinely believe that there will be more digital and less physical product," Bhardwaj told OXM. "I actually think the entire market will grow.
I think there's room for both – there's a certain type of customer who really wants a physical product, because who doesn't want those steelbook limited editions? I think everybody wants those. And there's a certain kind of customer who will also want the digital.
"So I think there's room for both, and it's our job to grow with the entire industry going forward, and offer people who want a certain product a certain way, that particular product in that way, and for people who want a physical product, to carry on buying that."
All three platform holders are significantly increasing the emphasis being placed on digital, with both Xbox One and PS4 to offer day one digital releases.
There has already been evidence of Nintendo choosing to compete on price with digital – whether Microsoft and Sony choose to do the same will likely play a large part in determining the speed of any possible transition.