Games retail is worth millions to these companies, they're not just going to shrug their shoulders and say "Oh well, we'll just have to sell more heart-rate monitors/baked beans/whatever-the-hell instead".
What?! Retail presence for games is as important to the retailers as it is to Sony, MS, Nintendo and all the publishers. There's a lot of mutually-beneficial relationships between those companies and retailers because without them, their product simply won't sell as well.
But the market would drop as a result. Demand for consoles and games isn't an absolute figure; the more places they can be bought, the more are sold. A lot of games are bought on impulse; people go into town, look around, fancy a game, see one they like, they buy it. You remove games from those locations and fewer games will be bought.
This is going round in circles, all of this stuff has been said already.
Yes but its all rubbish mostly, so what, retail dies, what does Sony care?
Impulse, you mean I have to go into town so on impulse I might buy a game... but you don't think having the price of everything on the PSN store so I have to do nothing but see the adverts when I turn on the games console to be tempted into an impulse buy?
What an absolutely ludicrous suggestion, Steam sale, read the thread, impulse buying at its worst(99% of the people in steam sale threads are buying anything in between a handful and 100's of games they will never, ever play... because its a good price). Reducing the price of things they can advertise as you navigate menu's would drastically increase impulse buying AND give them a larger profit for the same price. As for retailers, again because impulse buying is a ludicrous myth, Sony have no vested interest in places like HMV surviving or not. If all their gamers can get a console cheaper online, and can order their games via Amazon and/or via PSN then likely the exact same number of sales will occur.
This isn't 1990, people don't only buy consoles if they spot them in the local store. Better pricing of games = more sales, thats as simple as it gets, digital is cheaper and there is zero reason to protect the retail stores. If Sony get 4 billion from PSN or 4 billion from 10k different retailers, they couldn't give a crap.
One of the very simple reasons they keep digital sales high, is the same reason Apple price their crap through the roof... because people are buying anyway.
Why have a particular game available for £15 on Amazon, and £15 on PSN, when they can charge £30 on PSN and a few thousand people will just get it because they can't be arsed to wait, or hate amazon, or like digital downloads. For every idiot that has no patience or just prefers digital they make more money and because of these people prices don't come down.
The market has 100% of the power, if people stopped buying Apple phones at £400, completely, Apple would drop the prices, and people could buy them at £200, but people can't help themselves, its insane. If no one bought gpu's when AMD or Nvidia whack the prices up, they'd bring the prices back down, but people still buy so the prices stay.
Sony and Steam and MS won't drop their digital sale prices till the customers refuse to buy, if they refused as a whole the prices would come down, its really that simple. The few products that people have refused to purchase because a company was taking the pee.... the price comes down.