It started with music with things like iTunes and Rhapsody. Now it's moving on to games. There are things like XBox Live arcade and PS3 store where you can download independently made games or remakes of old classics. But now you can actually buy full Xbox 360 games on Live without the need for a disk.
Now that doesn't replace CDs as a medium for games as a whole, but recently a new PSP system was launched that was a Download only system. No CDs at all. In all honesty, it never sounded like an intelligent idea. When you get bored with a game or finish it, you can trade it in at game stores, and buy a new one. With this system, when you buy a game, you're stuck with it. You can't trade it back, or reconsider if you don't like it at all. Still, it'll probably be the way of games in the future, so I'd better make sure when I design a game, it's good enough to keep.
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