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I highly doubt that Microsoft or Nintendo for that matter would include a BluRay drive in either their current machines, or their future machines. What alternative does that leave however. Are they looking at more powerful drives for their next machines. That would be interesting. We could be talking next generation about Microsoft or Nintendo and their new proprietary drives.

I will say this Microsoft has a long way on their digital distribution before it becomes a viable service. They need to make their prices reasonable. They need to record purchases so consumers can delete and download purchased items again. Finally they need to have substantial storage capacity. They also need to deliver their external hard drive to the market.