When Sony announced its upcoming 160 GB PlayStation 3, Jack Tretton hinted at the gradual push toward digital distribution.  However, with the price cuts on Xbox 360 and PlayStation 3, GameStop COO Dan DeMatteo remains optimistic.

DeMatteo still considers the revenue stream for digital downloads as "pretty insignificant," and the new 160 GB PS3 is meant only to boost the console as a "media-hub," not make a complete transition to digital distribution.  Tretton has stated that an abundance of PSN exclusives is the driving factor behind this new model.

Insisting that this apparent trend will not be an issue for GameStop, DeMatteo stated, "We don't expect full distribution of new games to be a threat due to game size."

In regards to the Nintendo Wii, he's admitted that games in high demand take a couple more days to sell out now:

"Three months ago, whatever we got into our stores would sell in two days.  Now it's three or four days, but it's still extremely strong for a system that's been out... a year and a half. Demand is really very strong... it's going to continue, and there will still be shortages throughout the year."

He is confident that the holidays will prove lucrative for the major retailer, following a record-setting second quarter.  Games like Wii Fit are still difficult to find and ensure a steady flow of business for retailers like GameStop.