From a GameSpot article:
"We want Battlefield 1943 to be the premium downloadable game on consoles," Van Dyke said. With a technologically advanced engine powering a new entry in a proven franchise, that shouldn't be too much of a problem, but at what cost? "We're not talking about that just yet," he conceded, "but think premium pricing along the lines of something like Braid." Even more surprising, the team said that the game will weigh in as a paltry 350MB download, at least on Xbox Live.

So it looks like the small file size is making it possible. Like the previous poster said, it's more economically tempting to offer a game as digital content, if possible. Other companies are doing it too. Insomniac released Ratchet and Clank Future Quest For Booty last year exclusively on PSN and were able to offer it for only 14.99. One thing to note is that I wouldn't expect a "full" game for that price. The R&C; game was shorter than a normal retail game.

(I actually know personally of a company that has a game that will soon be ready to ship, but they're in such dire financial straits that they can't afford to pay for the discs and manufacturing. :O If digital download were an option, I bet they'd jump on it.)

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