Digital downloads were actually getting some pretty cool features. Right now, you can't do anything with digital downloads, so even limited sharing is a huge step for digital content. On the flip side, they were effectively getting rid of physical games. This is where the problem was. What they should have done from the get go was keep physical disks the same: requiring the disk to play, being able to sell/transfer games at will, etc. and just bring in the improvements for digital games. You'd effectively have DRM versions of games (digital), and [almost] DRM free versions (disks). Now, since Microsoft wants to move to a completely digital console, they should have made people prefer the new method, rather than remove the old method. They could have easily done this by having the digital downloads cost less than their physical counterparts. It would have been a win-win-win scenario.