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It boils down to a thing call pride, since HDdvd lost the format war, M$ might think twice of using BD in the future one thing for sure BD has Sony written all over it.

Like zune which provides HD quality movies we may see games similarly in that kind of format in the near future.

Developers now a days are complaining on how limited the dvd is, take for example recent Capcom game lost planet 2. because of the limitation developers have to resort to DLC's.

iam sure in the developers stand point the BD is more beneficial on how much content they can add with out the need of DLC.

what HanzoThe Razor said, the market of BD is growing, soon enough we'll see BD taking over DVD anytime soon as a physical format.