I don't think that was his point he was getting at. He is saying that even if MS went to Blu-Ray that it wouldn't cost that much for them to do so. But like other people are saying i just see them making a beefed up HD DVD where it has like 40-50 GB

Well, my belief is that Microsoft should've choosed to support Toshiba's HD-DVD in the first place, insted of DVD9, unlike PS1, PS2 360 Has had games with more than 1 DISC time & time again (Star Ocean,Final Fantasy,LA Noire,Forza 3,Lost Odessy,Blue Dragon.....ETC),

For anti-Piracy reasons using HD-DVD would've worked much better, Kept the Movie competition alive, specialy the way 360 was built, It's Obvious it was built to last 7-10 years (Unlike a PC, Microsoft didn't think with Pc in mind), anyway next gen till now have one option and that's Blue-Ray & I believe Microsoft have a hand in Sony's win (They didn't wish for it that's for sure), so they will be forced to go that way now, till something new comes-up maybe then they will learn from the past mistake.

There is going to be several things going against HVDs, though.  One, because of the tech it uses, the laser is incompatible with older disc formats.  This means that any player will require multiple lasers, which increases the costs.  Two, initial costs for players are estimated to be ~$15,000, with discs costing ~$120.  If MS were to use this in their next Xbox, they would be losing A LOT just to stay competively priced with the PS4.  And finally, and most importantly, there is...

Blu-ray.  Sony's estimate of the 10 years was the MINIMUM life expectancy for Blu-ray.  People have just started to get in on the HD "craze."  By mid-2010, 65% of US homes had at least 1 HDTV and I'm sure that number is at least 70-75% by now.  Blu-ray sales continue to increase, while not yet claiming 50% of physical movie sales.  This is partly due to Blu-ray being BC with DVD.  But as prices continue to drop, people will want to have something that takes advantage of those HDTVs.  So by 2013, Blu-ray will be getting closer and closer to passing DVD in marketshare, if it hasn't already by then.  Point being, people won't see HVDs as neccessary or be willing to switch so quickly when they have just started to buy into Blu-ray.  Not many companies will be willing to support it in 2013, either.  These above reasons are why many companies, including Sony, aren't even thinking of bringing out a HVD player until 2019/2020.

@ OP

The only real option MS has is to buy into Blu-ray.  Yes they will have to pay to license the tech, thus giving Sony and others a small income from them, but it will be much cheaper than creating their own format and setting up factories to produce those discs.  Plus, if they are going to try and be a media center (and let's face it, only Nintendo gets away with not being one) then they will have to have the lastest tech for HD movies, or otherwise seem behind the times.  I'm guessing not giving Sony, one of their main competitors in the video game field, any money, regardless of how small it would end up being, is the reason they have always opted out of the BDA up to this point.

There is absolutely no need for M$ to use Blue-ray.  M$ can use their own proprietary format for games.  A modification of the HD-DVD could easily do the trick. 

The next-gen M$ console has no need to double as a blue-ray player since streaming technology is now the preferred way of watching movies and entertainment.  Microsoft is investing a lot of money to enchance the entertainment hub of X-box Live.  The next-gen will have some VERY capable online movie libraries.  M$ gets absolutely NOTHING out of their customers watching blue-rays.  They would much rather make money from online rentals, then support an unneeded blue-ray drive. 

Blue-ray drive is antiquated technology that will never achieve the heights that DVD did.  Online streaming is way of the future-- Netflix is already the biggest source of Internet traffic in the US.  So, I will repeat my point one more time:  there is absolutely no advantage for M$ to use blueray. 

HVD is the way to go. BluRay is so 2009.

http://en.wikipedia.org/wiki/Holographic_Versatile_Disc

6TB storage on a disc. GG NO RE.

:D

Seriously: I can see them using BluRay, but it won't be a big deal. A BluRay will be near the 50 Cent mark for production and it already uses MS software. I doubt they will be paying much and Sony will get even less. Of course fanboys will make this look like an awesome cash-cow for sony, but it is not.

I thought Microsoft already invented a new format.

called HD-DVD??? ;)

just go with Blu-Ray and make everyone happy, no need to buy another blu-ray playing if you want to go xbox720 only

They'll go with Blu-Ray.

No they don't have to 'buy into it' they just have to pay royalties for each Blu-Ray disk they use just like how they have to play royalties for using DVD's.

And NO they don't pay Sony, they pay the Blu-Ray consortium.

Microsoft? You should read up on your facts before you start claiming stuff.

a new storage format? crazy stuff!

but i also heard they want to put a faster cpu in the nextbox!

i can't wait what they will think of next!

MS needs to add a blue ray players. As much as I may seem like a PS troll, which IM not because I dont have a PS, it must be done. Blue Ray is better than HD, with a next gen console, the best of the best needs to be in place.