Best Buy Is Not Happy About The DSi

That was quick. The DSi was just announced in Japan and already Best Buy took a hit where it hurt; the price of their stock. Business Week reports:
Goldman Sachs analyst Matthew J. Fassler told investors in a research note that Nintendo's newest gaming platform is a "tangible early threat" to physical portable game systems, which rely on cartridge-type slots to load games.And thus the debate for downloadable games over disc/cartridge based games begins again. Best Buy's stock actually fell about 5.5 percent, which in these troubling economic times isn't the biggest news of the day So what's the deal? Are the analysts blowing this one out of proportion, or is this the first major gauntlet thrown down in the console digital distribution war?
Analyst: Best Buy video-game sales vulnerable [Business Week]








Really? The local stores here in the Minneapolis area are really godawful for buying games, much less DS games. They generally only seem to carry the kiddy titles and some new releases (which are never on the shelves on time). I had to go to several stores to get FFIV DS on release day. I much rather hit up my local Gamestop/EB Games or the local used game shop, which usually stocks the new and good titles that anyone over 5 years old actually wants to play.
It's silly to think that digital distribution is going to put retailers out of business. Even if every type of content was only distributed digitally, people still need systems, televisions, speakers, players, converters, satellite dishes, and whatnot to actually make use of that content. Besides, digital music distribution has been around for a long time now, and I don't see any big box retailers with any fewer CDs on their shelves.
It's a little reactionary, imo.