Ah. I was referring to these numbers myself: http://www.joystiq.c...ng-cost-of-471/
they leave $28 for Microsoft and $18 for Sony after assembly (but don't mention packaging, shipping)
If the games are small in size. What happens when they occupy GBs and more GBs? Most people won`t bother with those games because they don`t want to carry SD cards with them.
That`s the advantage of having games on discs or having games tailored (in size) to those specific platforms.
When smartphones/tablets come packing big HDDs, then it will make sense in having such big games available for download.
The most popular games for smartphones are games like Angry Birds which are about 50MB. Need For Speed weighs 2GB, and only has 1/100th the download volume. Honestly? I really don't see really big games becoming popular, especially due to today's pathetic battery life and tiered data.
And you will never see a spinning hard drive in a mobile phone. they're just too fragile for the abuse that the phone will take. Show me a phone, ANY phone that ever was made that contains a spinning hard drive. Even the PSP Go was built on flash memory
phones will most likely continue to use flash memory, but in larger capacities as prices go down.