"the shorts are trying to predict the movement to a digital model years, if not decades, before it actually happens"
It's happening right now. The general bullish case to counter it is:
1) The threat is non-existent until digital is 100% of the market. Only then is it a threat. So if that time is 5, 10 or 20 years away, that is the time to be concerned, not any sooner. It's a black and white deal.
2) All games to download are of the current largest size at 20GB, which is therefore inconvenient. We ignore all smaller games, portable games, even 360 games which are about 7.5GB, as if they do not exist. Again, a black and white deal. There are no small sized games, or even averaged size games, only huge games and nothing else.