It was bound to happen because more and more customers are switching to more convenient methods to obtain what they need in terms of movies and video games.

If cloud computing ever takes off on a large scale alongside with greater access to high internet speeds, then there will no longer be the need for physical copies of digital content or any type of gaming console, video player, etc. Because in cloud computing, all the processing (that a game console does) is done offsite on a server, and the user just provides the input and receives the output.

Now offcourse all the businesses out their will be totally against this (unless they can make money off of it) because there services would no longer be needed. Services such as manufacturing console, video discs, video players, etc. All the user would need theoretically is a computer with internet access. The computer wouldn't even have to be fast because all the computation is done on the servers/else where.

Wiki to Cloud Computing