If the next xbox comes out within 4 years, it will have a Blu-ray drive for its optical media. HD DVD topped out at 30 gigs, with a theoretical max of 51 gigs, read transfer speeds at roughly the same speed as a 2x Blu-ray drive. A HD Drive or proprietary drive based upon HD DVD specifications would cost substantially more than a Blu-ray drive. Also, the HD DVD version would be far behind Blu-ray in both transfer rates and data storage. I don't think MS would put the next Xbox at such a disadvantage and increase its productions costs just to prove a point to Sony.
The other option is to include a modified DVD that has increased storage potential, but transfer speeds drop significantly with additional layers.
Thanks for the input, Jeff.
