What if MS didn't include BR playback out of the box but had a free download to enable it. That would allow them to sell the xbox without paying any fees and instead only pay fees on how many consoles downloaded the codec. I would say about 30-40% of owners wouldn't bother.

If its not using bluray then some sort of install must be required. very strange if true.

What will the games be released on if there's no Blu-ray? DVD's are too small and i don't see them going digital only. Also, i'm glad this say 2nd hand games are not blocked, that rumour needs to go away now

Do you know the WiiU, it has 50GB HD-Discs but not uses blu-ray, Microsoft could do the same use random 50Gb Discs you have not to use blu-ray if you want 50gb Discs.

Wouldn't it be cheaper to use Blu-ray since thats in mass production anyway

I'm glad there not blocking used games cause that decision would be a pretty dumb move by MS.

Surely it would be cheaper than using a proprietary disc and disc drive.

Who reads the op before commenting? This is as phony as a three dollar bill. How the duck would they even fit it in a 360 slim shell? Why the duck would they even do that and risk getting it confused for a 360?

If you read it carefully, it says that the prototypes are in 360 slim shells. Obviously the final product will have a brand new casing. 

i don't really watch a lot of blu ray and don't mind disc swapping so i rather not have those then not play used games