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EpicRandy said:
IMO. It is more likely that Microsoft will make a version of the One without Blu Ray than without Kinect.

A Blu Ray may not be as expensive as a kinect but Microsoft will be able to reduce the price of the One in more than one way without it.
1) The Cost Blu Ray itself.
2) Royalties of the Blu Ray.
3) People with this version will not be able to buy used games then Microsoft can take a greater loss with it because it will result in a greater return on investment on average over years.

LOL that is not going to happen Blu Ray drives are dirt cheap right now.  This is not 2006 where the drive in the PS3 cost $500 as a matter of fact I'm sure the Blu Ray drive in the X1 cost MS less then $50.  As for royalties per disc they are only slightly higher then DVD royalties.