http://www.forbes.com/sites/johngaudiosi/2012/07/18/new-reports-forecasts-global-video-game-industry-will-reach-82-billion-by-2017/
"Across the board the biggest driver of growth is online distribution and online usage business models.
These continue to take share away from the traditional model of selling physical boxed software at retail. The report Online Game Market Forecasts estimates worldwide revenue from online games to reach $35 billion by 2017, up from $19 billion in 2011. DFC believes that the next generation of console systems will allow for substantially more online distribution."
For one you could find a source from that is bit more recent rather than the middle of last year this data is too old to even consider. Also you say this is a claim the physical media is disiappearing, which isn't the case in gaming, its mainly PC and other forms (dvds and cds). Also consider the current backlash on the XB1 and the forcing of this market on the users, shows there is still a strong demand for physical media.
http://www.cnn.com/2012/11/09/tech/gaming-gadgets/console-gaming-dead
"That time has come. Gaming consoles have transformed into entertainment hubs for people to stream movies or YouTube videos. So much, in fact, that gaming consoles no longer are being used primarily for gaming. In fact, "40% of all Xbox activity now is non-game," Microsoft boasts. Amazon and Netflix streaming accounts for most of that, as they do for Wii and PS3.
Combined, game consoles account for half of all Netflix users. This is great news for the movie industry. Not so great for console gaming's bottom line, especially since the industry largely subsidizes consoles now."
Another irrelevent source from last year, keep in mind that if you were to view trends, console sales start slumping towards the end of an generation of gaming, its typically caused by the fact that people are awaiting the next gen. Also mobile devices and smart phones are more accessable than a gaming console is. This retort about non-gaming uses for the systems is just another point taht shows the gen is ending.
http://www.slideshare.net/bcousins/when-the-consoles-die-what-comes-next
I was at discussion when he gave it at GDC. There weren't too many people in the crowd grumbling about how incorrect he was. He's currently spending most of his time being insanely wealthy.
Sorry I can't view this video currently, the computer here in my class has no ability for audio, so I will take you word for it.
So, tell me about your research. Oh wait, you don't have time to do it, but you totally could and it would completely rock me.