Does the Xbox 720 need Blu-ray to succeed?

[Comrade Tovya]

No, DVD is not good enough for the next XBOX... developers were already starting to complain about the DVD-9 space limitations even prior to the release of the 360.

Do I think the next format will be Blu-ray? No way.

I think their are TONS of other options that don't include paying their competitor royalty fees by using BD as the media format.