People assume that a download is worth less than a physical copy because they can't physically hold it, however if you consider the actual cost of a dvd the difference in cost will be a couple of cents at most.
Let's not forget about the printed booklet (which is vastly expensive if you listen to ubisoft), the box it's held in, the plastic wrap around that box, the cost of loading it onto a truck, moving said truck halfway across the US, unloading it from the truck again, and getting some highschool monkey to put it on the shelves. The shelf space itself may cost money too.
It's still bullshit that physical games cost so much, but that doesn't mean there are no costs involved with producing them.
at about ~10 to upwards of ~40gigs per game
How is the PS3 so inefficient? Downloadable games on the Wii are only 10 to 40 megs.
Mkay Mr. Troll. Here's how the PS3 is so "inefficient": It has games that offer dozens (perhaps hundreds) of hours of visually rich, unique content. Oddly enough, you need gigs and gigs of textures and sounds and movies to achieve this. Not everyone has game tastes that stop at Wii Tennis, with its grand total of 2 textures.
WARNING TO ALL PERSONNEL: Firings will continue until morale improves.