The next xbox will have both DD and bluray imo. Microsoft aren't stupid they will push DD in the same way they've started this generation with the Games on Demand service but they're not naive enough to think everyone is connected to the internet.

Do you have a link to the article ? I would really like to read it. It makes no sense to me. Because Sony already makes smartphones since 2004 and MS had always problems with the mobile OS market. And they have a relatively small marketshare.  I would really be interested in the article to read what the exact reasons were. 

to the rest

MS and Sony may be rivals on the console market. But they are partners in a lot of other markets. And the rivalary isr real but with lot less emotions then people think. Ofcourse there is the press but this is for us the customer its a show. Both companies want just one thing: money. And every decision is based on money. Some may involve company politics. Like pushing the own technology. But just because that results in more money later. They give a shit about feelings like hate and anger. Some individuals may have feelings like that but the company as a whole is emotionless and like a robot not like a human. 

MS wont go DD only because its stupid there are enough people without a permanent Internet connection and people like me which HATE downloaded content. DD only wont be an option. Millions of potential customers all over the world would be forced to buy the other product and MS knows that 

DVD probably not because 3D and high res textures will take even more space then today. Bluray maybe joerc made an interesting point with java use but if MS has no other (better) option then maybe. HD-DVD is possible though but eventually MS wants also Bluray playback the role will be bigger in the future especially with 3d. Adoption was slower because the need for space isnt as big as in the past but its there,and growing. Maybe the next technology will take even more time for the takeover. They will need definetly something bigger then DVD (propriatary bluray format) Problems with the DVD just started yet and will be bigger soon and much bigger next gen. Technology is progressing and its the same like saying 640kb ram are enough for everone.

The use of bluray in the nextboy will be determined by the popularity of Bluray movies in the future. The progress in technology will make sure that they need atleast 20-25gb discs next gen.

It doesn't count the whole of the market. For example 42% of Netflix subscribers streamed video on demand for at least 15 minutes in 2009. Which means of the 9.6% of U.S. households with Netflix about 4% of them did video on demand through that service. These numbers aren't counted at all towards that $200 revenue figure. Nor does it count advertising supported streaming on Youtube and Hulu and other sites. In addition to this, Porn sites are moving to an on demand model which is probably not counted either. It probably only counts direct downloads through various sites like iTunes and not the Live services where Microsoft/Sony doesn't release any numbers either.

3D doesn't take up more space, infact it'll probably mean less space is needed as its simply a rendering technology and that eats up performance so they will have to use lower quality textures. Also the quality of textures is more limited by streaming speed than by the size on disc as large textures are harder to stream and Blu Ray speeds will only likely scale to around 3-4* their present speeds at best.

nor does any tracking service for that matter:

they take sample's and track the data. just like any tracking service does. but the point is they have their data, you than decide if you think it's accurate enough. that's all you can do. Digital download's are not as big as physical Media an most likely that will not change for quite a while, esp. in the US with broadband speed's capped, it's just not going to happen for a long time , if it even ever does.

many people view digital download's hold less value than something that is on physical media, for Music that is slowly changing, but look how long even still the MP3 has not yet even replaced the CD and most likely it still will not replace the CD.Reason being, because many people have downloaded those same mp3's that many people for today but still burn them to CD for their car stereo's.

Digital download's have an even bigger hill to climb when it come's to movies. people still used DVD because it's simple, easy and it is something they can collect. there are so many  DVD player's in the market that people are going to be less likely to give up on DVD over digital download's because even today not everyone in the US has a fast broadband speed.Which still is not going to change for a very long time.

let alone digital downloads being the majority anytime soon, getting people to change their view of digital download's Value will be the biggest hurdle In my opinion , and one I think is most likely never going to change.

People like to collect thing's, yes you can indeed collect digital download's but the Value of that digital download's collection is another thing by in of itself.

If it cannot be accurate, then why bother posting it?

Many people also consider digitial downloads to be of more value as well. You can't just assume everyone wants a physical copy. I would say its a matter of convenience as cars are starting to be MP3 compatible and they are also starting to carry storage for peoples music/video files but this is a transition in progress. Transitions take time, people are still replacing their old CRT screens with thinner HDTV models for instance.

The reason why DVD is a big hill to climb is due to the 1000* difference in size between a movie and a video clip. It has nothing to do with a desire for collection as only <20% are attached to the fact that they own a physical copy, its simply a lack of convenience. The digital distribution model for movies is simply waiting on the price/storage space model for flash to improve and it will enter the market as a rental service first because it would mean you can turn your rental store into a kiosk and Red Box it.

Oh and never say never.

The next Xbox will assuredly use Blu-ray. So will Wii 2 imo.

The real question is if PlayStation 4 uses it...

I agree with Digital Downloads, but as for Blu-Ray i still think Microsoft will still stick with DVD.

example:

just with Windows 7 Blu-Ray support

Amrita M .Microsoft Support,

Hi Patrick,

As we know that Blu-Ray is a patented technology so it requires appropriate codecs to be purchased and hence we cannot include it in our Operating System. To play a Blu-ray Disc, you need to use a non-Microsoft program that supports Blu-ray playback and a device capable of reading Blu-ray Discs. Check the below link: http://windows.microsoft.com/en-US/windows7/MPEG-and-DVD-video-frequently-asked-questions Hope this information is useful. Amrita M Microsoft Answers Support Engineer Visit our Microsoft Answers Feedback Forum and let us know what you think.

http://social.answers.microsoft.com/Forums/en-IE/w7pictures/thread/36f826cd-db66-45e7-bfad-1ad7f37f42af

While Microsoft could offer support for the blu-ray capability I think Microsoft's next xbox720 or what name they end up giving it would concentrate on Game's more so than movies exactly like they have done this generation. Movie playback on the xbox360 is not the main function ,an thus I think Microsoft would see that many of the xbox360 fan's would less likely care about Blu-Ray movie playback over game's.

to this day the majority of xbox360 fan's still see no reason for Blu-Ray support because DVD 9 is still very much viable for core centric xbox360 developer's, there are some 3rd party's that say that DVD9 is not enough, but those are few game's that DVD 9's space has been an issue.

by having the next xbox come standard with a Hard drive, that overcome's the limitation's of DVD 9.

So even then I still think Microsoft still will not see a need for Blu-Ray even next generation.

Now I may be wrong, but Even now Microsoft has not yet moved from that standpoint.

much like any tracking data it's accurate as much of the sample data they have. so why even be here on this site if you think that way?

just like you cannot assume everyone want's Digital download's.

I gave my opinion as you have your's.

if collecting has nothing to do with it why offer a physical disc at all?

it's in people's nature to collect thing's.

that why there is physical media in the first place, if people did not want to collect thing's the movies would just stay in theatre's

collecting I would say is a much larger part of it than what you claiming.

MS would probably be best off using a proprietary disc format, maybe based off HD-DVD to reduce instances of piracy while providing additional space for programs that need it.

The only reason for going with BD would be the convenience of using an established higher data density optical format at the cost of licensing fees for the proprietary format.

Not that it matters, but they've already been so stubborn on the BD issue, flipping a 180 by using it would be like announcing a retraction on something they already declared as final.

If they stick with DVD for the next generation, then they are being even more stubborn on the storage issue in addition to ignoring changes in developer demands for more storage flexibility.

As for an all DD console to skirt the storage issue; best not to try this in 2012 or whenever Xbox 3.0 is set to debut. It would be a disaster by cutting off all potential consumers who don't game online (shrinking, but still relevant %).