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I think that Microsoft and Nintendo don't want to support the Blu-ray mainly because is its the PS3 default format. If they can the will probably use another format. And with its low costs flash memory sounds like a good idea.

Here are some of advantages of using it:

  • Dynamic flash size, there are games that need more than 20gb to be stored, but games like NSMB Wii will need only 1 maybe 2 gb, so they can reduce costs by reducing the size of flash memory when possible.
  • Power saving, consoles spend less energy to read data from a flash memory compared to a blu-ray disc. 
  • Fast loading times,  we can load data from flash cards extremely fast.
  • Reliability, a flash memory is lot more reliable than a blu-ray disc.
  • Piracy, in a near future everybody will have blu-ray burner, but a proprietary flash memory device can be more difficult to backup for ordinary people (however flash cards like the R4 can be made)

I'm sure that they will use flash memory in the next gen, but I can't deny that it is feasible.