The following comes from THQ CEO Brian Farrell...

"(Future consoles without physical gaming) will result in a lower cost for the hardware manufacturer, which will result in a lower cost to consumers and therefore a lower entry point, thus driving more mass market adoption. ...no physical goods cost for game makers. No inventory, no markdowns, and all the money spent by the consumer would go to the developer or publisher. Our games are always on and our players are always connected....We have the opportunity to interact with players in new ways that can be reactive to their desires, play habits, and buying habits. The box, ship and done model is transitioning to: observe, measure, and modify," he added, explaining this as "a games as a service model where direct consumer feedback allows the ability to operate in this always on, always connected environment."

Check out Mr. Farrell's full comments here