The tension between used game retailers and publishers is rising like Nintendo’s profits. As publisher/developers carefully move to digital distribution, resale stores are being backed into a corner. It’s no surprise that the Elder Scrolls: Shivering Isles expansion pack appeared in retail stores, along with PSN/Marketplace. This fall Sony is gearing up to release a 160 GB console. In response to the upcoming release of the 160 GB console, GameStop COO Dan Matteo said, “pretty insignificant,” and the new 160 GB PS3 is meant only to boost the console as a “media-hub,” not making a complete transition to digital distribution. Tretton has stated that an abundance of PSN exclusives is the driving factor behind this new model. (Neoseeker) Matteo should visit Ms. Cleo. The 160 GB PS3 is not a direct threat to resalers’ pot of gold, but it’s another move by publishers to corner in on the market. Here are other signs; the impending price drops of both systems along with bigger hard drives, full game downloads such as Warhawk and Burnout Paradise, streaming Netflix movies over Xbox Live. The full transition won’t happen in 2008 or 2009, but this is a litmus test to gauge customer’s willingness to purchase digitally distributed content. XBox Live, boasting over 12 million subscribers is another potential threat to retailers. It could be years before there is a major transition in the way we obtain our games, but that doesn’t mean it’s not going to happen.