So what physical medium will Microsoft be using for their next gen console?

[bluemanrule]

I am under the assumption that Microsoft will do one of the following options, all physical media:

1) Fund the research prepping 42 GB DVDs and use that medium.
2) Fund the research prepping 500 GB BR-discs and use that medium.
3) Dual disc drive (HD-DVD/Blu-Ray) for games and movies respectively.