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Isn't blu ray Sony's proprietary format? I can not imagine microsoft using it, unless they are using a disc based system that has the same capacity as blu ray, but their own.

Also I would have imagined the nextbox would move away from optical discs and maybe employ flash technology next gen. Plus 50GB may seem a lot now, but come next gen it could become very restricting to put a game on one disc like dual layer dvds have been this gen towards mid-end of the cycle.