This is my stance as I already own a blu-ray player. Also @ Selnor I own 188 blu-rays and counting so I would have to strongly disagree on the dwindling selection part.

I have a couple question.... why even if you keep a physical support would you need a disk for a console...???? why not use some sort of memory stick USB micro SD stuff like that.... disk are and will be the shittyest less reliable way of saving and storing data ever invented even on BR.....
and with fully digital copies they could come up with a way to transfer rights and have a market place for that on XB or any console for that matter.... even though I don't see it happen.... they could have an eBay like app on the XB marketplace where you sell your digital copies and they take a percentage of the transaction (free money for MS, sure they'd like that)

1: Discs are far, far cheaper to produce.

2: Discs are also more reliable, unless you treat them badly.

3: Content delivery businesses allowing resale? I don't think so. Even if they would, they would have to negotiate that separately for all their third party associates.

Conclusion: No, just no.

still even treating them the right way.... disk sinc CD rom and to BR disk are all bad support compare to other form of storage available... in term of space it takes, longevity, capacity I mean the only think cool is that they are shiny and fly well beside that it is a crappy format and always was.....

yeah I know.... but if they go all digital they'll have to find a way to allow transfer of ownership or they'll have to have their game really cheap from the begining.... and I don't see how other parties get something when iot comes to a service you provide.... for all we know they could just team up with eBay or Amazon and have them handle that part.... I'm pretty sure it's less complicated than it seems from a legal and technical stand point... but the real problem is will it be benifical to them compare to the current situation... or not.... people who do use the second hand market to buy or sell... use it anyway... so if it doesn't cut into there new game sales why not....

but It won't happen yet.... until the law changes though... because it is bound to change one way or the other... either we get ownership of the digital copie and can transfer it or they'll have to cut the price and put it as a rental with no return date.... but things can't stay the way they are forever...

Blu-Ray and HD-DVD both used the same blue laser.

Blu-ray would be logical for MS, its much cheaper than when Sony first began investing in the software, it is the mainstream form of physical HD media, and its storage size will allow it to be used for at least all of next gen, if not 2 generations. I imagine Microsoft doesn't want to be seen caving into their enemy's format, but if they do anything else it will either gimp their physical distribution, or cost them more money for less bang(USB sticks, brand-new format disc, etc...). With PC gaming being dominately DD now, chances are MS will want to do that by the end of next-gen (no middleman = more $$$$$$).

1: Discs are cheaper per bit, and they will remain so for the foreseeable future.

2: They don't have to do anything of the sort. What they'll want to do is to make sure that Microsoft (or Sony, or Nintendo) is the only shop in town, and they           won't allow resale. Even now, you have companies that barely allow you to lend a gimped copy of a game to a friend.

3: Yeah, sure. It's "bound to change". Because you want it to?

Actually, I think they might get in trouble with anti-monopoly laws if they went single-store DD only. Someone with a law degree around?

not because I want it to, because laws in the digital industry are barely seeing the light of day.... the current situation is not due to bad past laws really but more to rushed ones to ensure a legal ground on something new... or just not existing at all and therefore not really clear on the status quo.... most of the agreements you accept, are half arse attorney crap with no current status they writte down to cover there steps in case it does become an issue....

the question of ownership rights will arise if things really go digital... there is no way consumers and consumer association seat here and accept what is today... and if entertainement because really fully digital it won't be in there interest either (for the companies) because there is no way people consume the same volume if they can't resale it or get it for cheaper....

they won't be the only store in town... first like you said for monopolistic reason but also because being a monopole is a good deal on the short run..... especially when it comes to entertainement.... even if did happen they'll have to change... monopolistic situation are a lose lose situation for every party at some point unless you are backup by a governement..... USSR style....

about BR still I don't believe that format will ever reach the DVD status... and replace it..... we'll see people having smartphones with media players and internet capabilities all over soon enough... buying there media online or at a media ATM at the store.... and will stream it from there pocket device to any screen... before BR makes any major impact in the mainstream +50 housewife.....
 

I'm all for Microsoft using Blu-ray in the next xbox console, while i have been very quick to adapt to downloads,
i still think it's important for them to cater to everyone possible.

Which makes Blu-ray a sensible way to go. (Maybe if the HD-DVD player was built into the Xbox 360 originally, the story would have been different)

Royalty wise, Microsoft should be in no position to complain, they're paying royalties to the BDA, instead of just Sony, and even if that was the case, Sony sells pc's with windows OS on them, royalties for who? MS off course.

Before i get hated on, i own both PS3 and Xbox 360. (I prefer 360 actually)

oh btw... I forgot to mension even if I do not believe in BR future and think plastic disk are shitty storage solution.... I have nothing against nexbox having a BR player if it has to have some sort of disk reader... I still think I'd be better off with my 100Gb USB key on my key chain loaded with the 2 last game I got at game stop... my family profiles and a couple games DL on XBL as well as my saves for a few games... when charlie calls me after work to swing by his place to have some serious play time....

without saying that they could come up with 2 nexbox... the "nexbox media player" with BR and the "nexbox cloud" fully digital and cheaper in price....