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PDF said:
if blue-ray can hold so much why have hard drives??? why dont they just put a blu-ray in the ps3 and have all the info be recorded onto that one disc instead of a hard drive

A HDD (hard disk drive) has better seek time, better read/write speeds, better reliability, and better durability.

As for HD-VMDs, I highly doubt that the XBox360 will be able to read them with just a firmware update. Sort of like how an 8 layer Bluray disc would be unreadable by my PS3 (although Hitachi claims to have made a 4 layer disc readable by current Bluray drives).