"Also, the argument that BR-DVD takes a beefed up CPU/GPU combo may be valid, but I really, really doubt that a machine produced in 2011 is going to have any possible problems running a Blu-Ray drive. Moores Law would state that a next-gen system will have about as many problems as the X360 did with running DVDs, since it's using a last-gen optical device.
Personally, I think Microsoft will jump ahead of BRDVD and just chose another option that has better licensing fees, provided the BR-DVD fees aren't very large."
1. They need the beefed up combo to take advantage of the games. Why would sony want a so-so CPU/GPU and an expensive BD drive? Having so-so specs while having a BD drive would be a waste b/c you wouldn't be able to do much at all with the games that you've paid a premium to have storage space on.
2. If MS chooses a proprietary format they won't even be able to play dvds which would be a big mistake. If MS chooses dvd then they won't be able to play Blu games which would make them eat sony's dust
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