I was surprised to find this just happened; the final VHS supplier calls it quits. I figured that would've happened a while ago. Surprise, surprise! The co-owner's comment was no surprise to me, though:

As it turns out, Distribution Video Audio now sets up discount DVD displays for big-box retailers, although Kugler warns that DVD's days are numbered as well. "The DVD will be obsolete in three or four years, no doubt about it. Everything will be Blu-ray," he said.

Speaking of which - globally Blu-Ray seems to be doing well, but it looks like they've finally gotten around to a Blu-Ray/DVD hybrid disc to market. It sounds superior to the HD-DVD/DVD hybrids in that you don't have to flip them over, which is a nice convenience. Hopefully movie companies won't make the same mistake as they did with the HD-DVD/DVD discs - not sell them. The hybrid format was meant to help the transition between DVD and HD-DVD by allowing consumers to buy one disc that had both formats. Great idea, but it barely got used. Had HD-DVD movie companies had followed through with that plan, the format war might still be going on.

Hopefully next year we'll see a lot of movies come out this way. Why? Its consumer friendly (which is a good reason for it not to happen, given the industry's past record) as it protects your investment - no having to buy the same movie twice, or "waiting it out." Likewise, you can get a movie and lend it out (or borrow) and enjoy the best you version you can. It will help reduce redundancy on store shelves (ie, not having to stock the DVD and Blu-Ray version of any given movie). Side benefit of this is there's less waste to boot.

This won't affect gaming any, but that's okay.