You can see this already with PC gaming. Digital distributors like Steam have pretty much demolished the brick and mortar stores. My local GameStop barely has a PC game section anymore and it's not because the PC market is shrinking. In fact, it's growing.
Brick and mortar stores are dying and they know it -- for PC games anyway. It's like they are not even trying anymore. I am an independent video game developer, and I tried my best to let GameStop et al sell my company's game, but they do not even return calls. We have not even gotten an email back yet.
Meanwhile, our upcoming title is going to be sold in virtually every single online store -- some of them responded within a day of being contacted. Here's our list so far.
Brick and mortar stores are still clinging on for consoles releases. Retail stores pretty much are the only place to go when you want to buy the latest AAA titles (except Amazon, which is like digital distribution with very high latency).