Originally Posted by Broken Cage
That's Apples and Oranges, just as it was when Shipwreck made the comment. Here is why, there is and never has been a physical media to use with the Ipod. It, and all MP3 players, have always been exclusively digital. There was never a market for Ipods and other MP3 players to take away from retailers. (Also MP3s are the result of extreme compression which can be detrimental to sound quality, thus many people still insist on buying the actual albums.)
Consoles, on the other hand, have ALWAYS had a physical media that retailers stocked and sold. To suddenly remove that revenue from the retailers only to improve their own cut could certainly lead to a backlash.
Edit: and before the argument that "mp3s hurt CD sales" comes up, that had nothing to do with Ipods or any other MP3 player on the market.
Wombat's core argument is that retailers make their money off of the software sales, and that without that they have no reason to sell hardware. This is false. Ipod argument stands.