Well you see things like downloading a game onto a hard drive is not a solution.
1. You don't actually own anything physical and there are issues with storage/data corruption.
2. Cost is too similar, companies again are trying to INCREASE profits on products which are overpriced already (hence mass piracy)
3. You have to purchase enough secondary storage to host it all. So on an Xbox360...get the KY Jelly ready before looking for a half terrabyte 360 hard drive

First point is the biggest problem though, because if I buy a game on disc for 360/PS3 and I complete it fast (like 1 day for Colin McRea Dirt 2) then it goes straight onto ebay as a mint used once copy and I get back most of my 50 bucks. Secondly as crappy Microcock Winblows is the default majority OS and fails frequently who is going to foot the bills for re-downloading what you own? Is it more difficult than the life of a pirate and his bittorrent client just re-downloading it again? Probably.
If they want to sell me a digital copy of the same game it can not cost more than my loss from buying and selling it a week later second hand. So about 10 to 15 bucks. Also it needs to be installable on multiple machines for a single purchase for PC games and a VERY helpful and friendly service to help you out when a problem with your digital purchase's source files are shafted thanks to Winblows.
Another reason why people pirated Amiga games was the ability to back up their collection. Spend £35 on Shadow of the Beast in 1989 and you have no way to back it up to protect your sizeable investment unless you get a cracked copy you can copy at will via X-Copy.
Media companies created a need for Napster/WinMX/Shareazza/Bittorrent, the way piracy is fought in countries where they have no bent politicians to pass civil liberty infringing laws is via a very attractive sale price. Clearly then if a company can sell an album for 3 bucks or a game for 10 bucks abroad they can do it here, screw the suits....they brought this all on themselves from the day the first rubbish Amiga 'ST ports' were being sold for more than the ST version.
Ditto did CDs ever come down in price in the 80s? Nope. Despite the fact vinyl records cost much more to mass produce they just kept the price of CDs at 10 bucks and increased the price of vinyl to distract you. Ditto with VHS tapes and DVDs. DVD still costs pence to produce, most titles are around 12 bucks with some useless extra crap on a 2nd DVD. Fantastic. We have a choice now, it is called "I will decide for myself for free via bittorrent thanks"

And their answer is to introduce Nazi-like laws to impinge on your freedoms and civil liberties, good move to win public support. There will always be a way to pirate things easily, it's the digital age. The media companies need to address the reasons people do it rather than just assuming everyone is a cheapskate who wouldn't buy it anyway. Mass downloaders of MP3s statistically spend more money on actual purchases of MP3s anyway.....maybe the dumb dumbs need a good smack on the head with an ACME mallet to see common sense! Pass draconian laws and they will not bother doing stage two "I like this tune, I will buy it on iTunes because the artist deserves it" just to spite the media companies cock measuring with the lawyers and politicians at the expense of the free world.