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ArnoldRimmer said:

None of them will be download-only. The trend is of course going that way, but the time's not ready yet (hello PSP Go) and it won't be for at least 5 more years.

Disc-based media will again be the only option for all next-gen consoles, so all of them are going to use one of these:

DVD

HD-DVD

Blu-Ray

Sony is of course going to stick to Blu-Ray. Piracy-wise, HD-DVD would be an interesting option for Nintendo and Microsoft, but I'm quite sure neither of them is going to use it. HD-DVD is dead, so using HD-DVD would be very expensive because nobody produces the technology anymore. By the time the consoles launch, Blu-Ray technology will not only be superior, but much cheaper than HD-DVD as well. And customers of course love Blu-Ray - to sum it up, HD-DVD is not going to come.

So in the end, Microsoft and Nintendo will choose between DVD and Blu-Ray. Lower production costs will be a small advantage for DVD, so Nintendo might eventually stick with DVDs. Microsoft however will most definitely pick Blu-Ray. Consoles have turned into media-centers this generation already, and the customers like it. With next generation consoles using Full HD, 3D graphics etc., a console/media center that only supports low definition video DVDs would really seem oudated

Isn't there a chinese version of HD-dvd that is in wide use?