Earlier quoted context omitted.
That doesn't really work. The game is still supposed to be $60 at launch, that's when games make the most money, they really are worth that much (and more) as evidenced by the many people who pay that much for them, even on DRM-laden platforms like Steam. The point is to let the price fall faster after launch. Xbox can't exactly promise "Our games' prices will fall faster than the other guys" because the market will…
The reality is that nobody cares about the poor schmuck in rural Nebraska. 80% of the US population is urbanized. Most of the ones that aren't still have access to DSL, cable modems, or fixed wireless of at least a few megabits. Of the remaining population, a lot of them don't want to play video games or can't afford them anyway. Some (probably large) portion of those that are viable gaming customers will simply make…
But more generally, why are you only talking about the United States? What you are saying might be true of the US, but plenty of places across the wider world are home to people who play video games but don't have an internet connection. Or have a spotty internet connection. Or have a connection with restrictive data caps (meaning digital download only would be impossible).