@thismeintiel
Initial cost analysis of new technology is almost always hyperbolic. The same holds true for technical issues as well. Until challenges are overcome it is simply being assumed that they are insurmountable. While in development you have to see these things as being the result of unknown variables. I have read these same figures before they were applied to both the DVD and BluRay formats. Yet when they came to market while expensive were not prohibitively expensive. There is no realistic reason to expect differently from Holographic media.
Companies do not develop technology that will be impossible to sell. They obviously feel that they can make the product cost effective, and the media cost effective. Otherwise they wouldn't be spending the money developing the media. This all before the effects of mass production are made clear. You cannot underestimate those either. That is how BluRay went from eight hundred dollars a machine to a hundred dollars a machine in the span of a single year.
I am not saying it would all be out of the box profitable for Microsoft, but it probably wouldn't be absurdly expensive. Not to mention they follow a loss lead model. So if losing a hundred dollars on a new format gives them a hefty edge they will probably go that route. Anyway the entire storage issue is mostly for chest beating anyway. The truth is the vast majority of games fit onto DVDs. The PS3 didn't need the BluRay it was just equal parts trojan horse, and bonus feature. The games most assuredly didn't need the extra space.
