Using that argument, you can say that major advances in technology that we've had to this day are of the same issue. HD Telvision and digital broadcasting (not all nations have transitioned from analog broadcasting), hybrid vehicles and so forth.
Then again, DD has been on the mass market for awhile, thanks to Apple. It just hasn't been around much for games in particular. However now major markets are changed entirely by digital distribution of films (itunes, PSN, vudu, etc), books (amazon, apple), and music (itunes, Amazon)...
It really began to kick in for games, I think, with Steam, the Wii, PS3, and X-Box 360. We've had handhelds change a generation, as chaosblade pointed out, and we're about to have consoles themselves change out, with the Wii-U, and Sony and Microsoft's talks.
When the CD-ROM's came out and suddenly games started jumping to that- such as when Cyan released Myst, did people think that it wasn't going to be a 'smooth transition?' I think people jumped onto the CD drive quite eagerly, personally. Before you knew it, the Turbo CD and Sega CD came out. Look at what they did to gaming.
Or when DVD's started to come out in comparison to VHS tapes? This is just another change in technology. Technology changes all the time. There are going to be some growing pains here and there. ...and like any change out there, you're going to hit growing pains.
At my job, we had a lecture on the whole change structure (we're doing a massive structural change at my workplace), and that is causes a lot of problems, and shakes things up. People aren't ever comfortable with change. The important thing is to find out if that change is for the good for the future of who is involved in the change.
I think digital distribution is going to be a very good thing. It evens out the playing field, in a sense, when costs are enormous and mainstream publishers are looking for sales like what was earned recently with Mass Effect 3. (3.5 million units is insane!) Because of that, it's keeping smaller publishers and indy developers from really getting their own works out.
But since we're in that 'growing pains' phase, it's going to take time before people can come up with a stable medium. Everyone wants a say in it, and multiple mediums are going to be this way. (Look at digital media, anyway. Video files and their codecs, the arguments on HTML 5, Flash vs Director (does anyone here actually remember Director??), PDF and other document display formats...)
The best part of digital distribution is that it becomes possible for the little guys to join in. And when you have companies as small as XSEED trying to keep afloat... it's a weight off of their shoulders.




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