Digital Distribution can help save the world.

 People are wary of it, uncertain of not owning something they can see and touch. Business' are afraid of it because it'll cut many of them out of the loop. The implications of selling digital only products online, and seeing physical media fall to antiquity go far beyond our material products, and the profits of retailers. As this comes to pass we'll see it have a positive effect on global warming and humanities necessary goal of a zero emission carbon footprint.

While this will mostly have positive effects for the world there will be some detrimental human costs. To break everything down a bit;

Manufacturing.
-The disk, manual, case and other stuff doesn't get made so a whole factory full of people is cut out of the loop. Along with numerous machines that don't have to be running.

Packaging.
-Again the disk, manual, and case, plus any boxes the games are shipped in don't have to be paid for. They don't have to purchase the plastic and paper and cardboard.

Shipping.
-From the factory probably on a truck, maybe a train, for many places boats get involved. After that they go back onto trucks and go to warehouses for wholesalers and larger store chains. Then they get shipped from the warehouses to the stores themselves at some point.

Retail outlets.
-After they get to the store, possibly with promotional display material, there are employee's and business overhead that the outlet needs to pay for plus their own profit pie.

So obviously there will be thousands, possibly millions of people that will gradually see their field of work shrinking away. Business' devoted to games, music, movies, and possibly books that most likely won't be able to cope.
Getting past that though there will be immeasurable amounts of plastic, paper, and fuel saved. From power plants to a person driving to the mall to buy a game, all becoming unnecessary. 
Admittedly the internet will most likely consume a bit more energy but I highly doubt it'll eat up more than a tiny percentage of what is saved elsewhere.

All things considered I very much hope digital distribution quickly makes physical copies of stuff obsolete. It already has for me by and large, except for console video games I tend not to use physical anything. Good luck in your conversion, I know it'll be hard for some people.