He sees a future of downloads. One where walking into a store and buying a disc copy of a game is an impossibility. Not due to the fact that discs no longer exist, but because the young ones of today won't want their games in that way. Phil thinks "there's a generation of kids being born today and probably already alive who I'm pretty confident will never buy a physical media product." Phil went on to elaborate that he thinks they'll "never buy a DVD, they will never buy a CD, and they will never buy a game in a box."
We're not entirely sure that such a future is so close to becoming a reality, personally. For one, there comes a certain satisfaction from actually holding something in your hands that downloads could never achieve. Second, that would mean the next generation of consoles would be affected by this and we're not willing to drink the Kool-Aid and say that all three major console manufacturers, as well as the plethora of third-parties involved, would be committed to offering all titles as downloads. Third, have you ever smelled the inside of a freshly opened game? It's like new car smell, but way better.