Nintendo of America head Reggie Fils-Aime has high hopes for the Nintendo DSi's digital distribution abilities, but adds that "it’s not something that’s going to take over retail game sales."

"We’ll be able to see the sales growth and plan for it," Fils-Aime told VentureBeat. "But I guess similar to home consoles, the consumer will want an experience that’s best delivered through physical goods, simply because of the memory size required."

Fils-Aime went on to say that he would not be disclosing the amount of flash memory included in the DSi, further adding fuel to the argument that Nintendo's lack of faith in digital distribution is directly related to the firm's unwillingness to give any of their systems the sort of storage found in their competitor's respective offerings.

Image courtesy Nintendo

Q&A: Nintendo of America chief on game industry competition[VentureBeat]