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I've had a problem with Microsoft's heavy belief in digital download for as long as they have been promoting it. People like to have that physical little disc or tape in their hand and be able to say "I own this". Rather than having a little black box sitting on top of their TV with 500 movies on it, people want that medium that they can put in a player... for whatever reason.
I think that the spinning disc is going to be around long after Blu Ray is dead and we've moved onto whatever 4000P format is 20 years away.
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