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it naturally will be Blu-Ray. Those who say they would go with a different format to avoid piracy should know that if they were at all concerned with the piracy they wouldn't have done DVD in the 360 as the original xbox had a major piracy problem. It will not be DLC because they need their retail partners to support it. Other important factors is the dynamic group of gamers there is a great deal of gamers that only buy games with the intent to trade them in after they are done and another group that only buys games second hand. The main factor for the physical format will be what will be the cheapest to mass produce and that can meet the needs. This will likely again be an optical disc format and Blu Ray will be the only format that will meet the needs. Blu Ray is to Sony this gen what the HDD was to the original Xbox. It's nice to have, but the added costs are a major handicap, but it is the future of gaming. I think the future will have some sort of online validation to combat piracy.