And this is why I won't be buying any other Valve game in the future. Limiting my choices in retail was already the reason why I didn't even consider buying the Orange Box, since I didn't want to buy games I already had and games I didn't want.

I have download limits and Steam is nothing more than an easy way to get updates, nothing more. Not to mention that as a collector, digital versions of a game, mean absolutely nothing to me.

I love Valve and make most of my PC game purchases of late through it, with notable exceptions for titles that fall outside the conventional range. While I know I'm feeding the beast, the level of convenience for me is staggering since I have a capable Internet connection.

I've grown frustrated staring at a halfhazardly kept-up PC Gaming area at a Gamestop or EB Games one too many times. You know it's bad when my nearby Walmart does a better service to PC Game retail than anyone else. (Yes, I am using some hyperbole here, and yes, I know there are notable exceptions to both of these anecdotal comments, but the nub of truth is within them at least in my direct frame of reference).

Online distribution has a market but its just not for me. I like my physical media and that probably won't change for me unless there is a substantial price difference between the two.

I understand online distribution can't undercut retail stores in price but the convenience of not leaving the house to purchase a game just isn't enough for me especially if I know a game is on sale at a retail store.

By 2012? Possibly but I wouldn't say that's soon. Digital distribution still has to mature to win me over although I still would hate the fact of having to run one program to play another. That and I noticed patches have to go through Steam for them to work correctly.

I'm just hoping publishers don't jump on the bandwagon and have a program for only their games. *sigh* Having 5-10 programs just like steam on your computer wouldn't be too appealing.

Last month, Valve's Doug Lombardi laughed off claims about the demise of the PC market, giving several reasons why he thought the market wasn't doing nearly as badly as everyone said.

..."as everyone said"...? Who, pray tell, is "everyone"? I recall lots and lots of people, including companies like Valve and EA who actually sell into the commercial PC marketplace, not to mention yours truly, disagreeing most vehemently, and in the strongest possible terms, with "everyone"...;) Heh...;) I think a much more fitting phrase would be "some people" instead of "everyone" because it surely never has been said--ever--by "everyone"...;)

Indeed, thanks to Valve and EA, we also understand and have identified "everyone" as simply people with a vested interest in having other people buy consoles.

As far as listening to the PR departments of console companies goes, I'm amazed that anyone with any experience both in PC gaming and in console gaming might ever make such a mistake in judgment. Generally speaking it has certainly been my experience over the past 22 years that PC games are both better and cheaper than console games, and often by substantial margins. I find it remarkable that experienced people in major websites having to do with computer gaming in some fashion might ever be so easily manipulated into seemingly repeating--endlessly--the same old tired, worn gossip. I've been hearing it for well over a decade and it has *never* been true.

The truth is so simple and easy to understand. Yes, console gaming is growing dramatically--but so is PC gaming. The reason that both have grown dramatically over the past decade is because the installed base of consoles *and* PCs has grown dramatically over the last decade. For some reason some people still want to believe that the gaming market in total is fixed, and that as console gaming grows in popularity that means inevitably that PC gaming must be in contraction at the same time. The truth of course is that both markets are growing briskly.

What amazes me most of all is the fact that when talking "consoles" people lump Nintendo and Wii right in there with the xBox and the PSx. I mean, if they know so little about gaming in general that they would do this then it is no wonder they invariably screw things up royally when making "analyses" that just aren't pertinent to anybody who actually knows what gaming is all about and has spent a lot of time in it.

Last, does it really matter whether people buy their PC games in shrink-wrapped boxes off a store shelf, or they buy their PC games in digital form from the Internet? I can't see how, as they are *all* PC game sales, aren't they? Too bad if your game is to only count boxed copy sales and nothing else--that's your problem, not mine...;)

Online has eclipsed Retail in my case, hands down.
Edit: and I don't mean Torrents.

Yes, I see online distribution eclipsing retail also

Long live PirateBay!

I like downloading from Steam because you don't have a set number of downloads after you have purchased a game. Not so with EA! EA only allows re-downloads for 6 months, unless you pay $5.99 for an extended download period (2 years). If I spend $50 on Mass Effect, I would expect EA to support re-downloads just like Steam since they save the overhead of packaging costs and shipping. I love Steam but EA is TERRIBLE. Stardock is also a good source for their games. Just avoid EA downloads and you'll be ok.

Valve is right. If more games are offered online then theres no reason to go out and buy a disc that will get scratched with a CD key you may lose over the years. Thats my 2 cents on online downloading.

Good to hear that PC gaming is still kicking... I have sworn against xbox's since I found out who made them (I can be a tad on the slow side sometimes :)

I 've enjoyed plenty of online purchases from steam but there are still enough reasons to buy retail depending on your preference.
Both have their merits and demerits and different factors to decide from

-difference in price (I preordered Orange Box from steam because of the 10% discount while I bought retail CoD4 for 29.99 while steam was still at 49.99)
-ease of obtaining from your house or store. Downloading is easy enough but can turn off people when your game is a 10GB download. ANd the size of new games aren't going to get smaller either.
-resale-ability, owning the box/manual (one can get the collection feeling while the other might think boxes are nothing but taking space), -managing the game disc (CDDVDs save time installing but if you lose it you're screwed)
-retarded DRM policies. Especially the limited install ones.