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I would think they would have to move to blu-ray...seeing as next gen system will come no later than fall 2012. Im willing to bet HVD (holographic video dics) will not come out that time due to cost.

As graphics technology improves so does the amount of data used to store them. Look at most of the recent AAA offerings .... Final Fantasy 13, God of War 3, Uncharted 2. All of those games exceed 30GB of data. I think thats why the xbox360 has not have a game graphically comparable to that of the ps3. The problem with dvd is compressing data causes it to lose quality. With blu-ray you dont have to compress data because u have a limit of 50gb.

Digital distribution is just ouf the question for now because of the download speed. The average internet user i would assume have the budget internet $40-60 a month at 6-15mbps.