I'm not saying that physical media is going to die, but I do think the industry is going to make a push towards becoming a service, because it seems to be the natural progression of every media platform. It provides a more sustainable means of income for the providers and offers additional conveniences to the consumer.
Gaming as a hobby won’t die (at least not for awhile), but you will see the idea of offering a service and a unified platform come into play. It’s obvious that Microsoft is aiming for such a strategy, but PlayStation isn’t ignoring this angle either. PlayStation Plus is the perfect example of such a manifestation offering deals and free games for a subscription.