Including this gem of a quote:
"You could take that point of view. But you could also take the point of view that the only way in which our industry can continue to grow is if the margin structure enriches game development. Meaning that as much as the consumer spend as possible accrues back to the creator. Striking a balance between those two extremes is going to be tricky. Particularly when you have this direct A-B comparison of Tesco selling a packaged version of the game and an online service selling the digital version of exactly the same bits and the pricing is easily comparable. What we're seeing is a trend where new business models that are going to exist only online are going to potentially be the ones that last the longest. Look at some of the free-to-play investments that we're making on Xbox 360 with World of Tanks and Warface. They won't be retailer experiences, they will be digital experiences, you won't have that direct A-B comparison."
When responding to "why aren't digital games cheaper".
If I'm reading this right his answer is "Because you have a comparison".