It comes down to simple economics, for Microsofts next choice.
If the Blu-Ray provides the cheapest, most reliable, easy to manufacture, option...Then MS will do it. Sony doesn't own Blu-Ray. The Blu-Ray association, as far as I know, does. Sony is only 1 part of that association....
Correct me if I'm wrong, but Microsoft already pays Sony for Sony Pictures movies via Netflix and the Marketplace, right? So why is Blu-Ray any different?
Going into the future, Microsoft will look at every format - BR-DVD, HDDVD, HVD, and a litany of other formats, and chose what is the best. I think they'll certainly use something bigger than DVD, and preferably in the 20gb+ range, but I am unsure. I think they should use BR-DVD if it's cheap enough to produce by 2011, but we'll see.
Back from the dead, I'm afraid.
