^^ Do not underestimate the power of the casual market!
But I agree. If digital downloads were included the picture would probably be quite different, as many hardcore gamers overseas (especially) would prefer the benefits it provides and wouldn't have to pay exorbitant bandwidth costs.
There's no need to run out to the store when you can just download something in the comfort of your own home. Though I still prefer owning a boxed copy of a game myself.