Xbox Vice President David Gosen is confident that downloadable games will overtake retail games as the dominant sales driver in the video game industry.

Speaking at Microsoft’s Gamefest event in London, Gosen said that “[t]here’s no question digital will overtake physical. It happened in music and will happen to our industry.”

Gosen pointed to the success that Rock Band, Guitar Hero and Xbox Live Arcade have had this generation, saying that these success stories proved that “digital will be the dominant force in the future.”

Given that Microsoft has managed to rake in over $240 million in micro-transactions during the life of this generation, combined with the overall trend of entertainment–it’s hard to argue with Gosen’s conclusions.

Source: [MCV]