Yup that is why MS used DVD also a Sony co-developed format, supply one of the main video codecs that Blu-ray movies uses (VC-1) so every Blu-ray player sold gains MS money, supply Sony's computer devision with windows and much more...

Sorry to break it to you but huge multinational businesses are not blind fanboys that are at war with each other because one devision in each company is competing.

So you in other words, you dont care about visual and audio quality.

and dont care about having constant special features on every movie

Would it be considered MS stealing a Sony exclusive? lol i kid.

personally I would like to see a blu-ray in the next Xbox for backward compatibility, thou I really think blu-ray kinda missed the boat. I really really hope they move to solid state for games though, why impose the speed and format limitations of spinning media when solid state removes those blockers in a more convenient size factor and price has been plummeting on a per GB basis for the last few years with solid state mediums.

Yeah I can see blu-ray in the next Xbox

DVD was almost a must for Microsoft. At the time DVD was the primary format for playing movies and Microsoft had little choice but to utilize DVD. The second HD-DVD came out they saw they could avoid supporting Sony's platform and they tried to make HD-DVD a success. If BluRay was so advantageous for them they wouldn't have backed HD-DVD in the first place they would have gone straight with Sony. As for selling Windows to Sony, well almost all the major tech companies are outfitted with Windows Computers. Even Apple has PC's and likewise MIcrosoft has Mac's. This doesn't warrant supporting a competitors platform.

Microsoft does not want to give Sony a dime they don't have too. Microsoft entered the industry to protect its PC business from Sony. Sony had talked of making PlayStation a computer and they have certainly headed towards that direction. Microsoft entered the games industry as a pre-emptive strike to prevent Sony from going after PC. X-Box was supposed to be a three phase assault on Sony, Microsoft even through support behind Nintendo's DS to help them keep Sony down.

So no, Microsoft does not want to use something that will benefit Sony. DVD was a must but with digital downloads and things like NetFlix there is very little reason for Microsoft to adopt BluRay. Yes it would add functionality but it wouldn't give them enough of an edge over Sony to be worth while.

I'm not going to say BluRay is impossible its a decision Microsoft has probably debated often. But Microsoft has stated in the past they would not support BluRay with Xbox and it doesn't fit in with their objectives.

As for GameStop and EBGames being filled with moron's. I am not referring to the senior staff I am referring to the idiots the retailer hires. Of course I was offered a job there and turned it down to the insane work hours. But the newest employees at my local EBGames are completely incompetent. I was in just last week to pre-order BattleField3 I had held off till I could afford to pay out right. I knew the release date at least thought I did but decided to double check. The employee didn't know he had to access his computer to find out.

BestBuy/FutureShop and many other big multinational corporations hire dip shits as well. This doesn't mean the companies leadership are utter morons just that the majority of their staff are incompetent and incapable of providing knowledgeable service. I applied to work in the games and film department I had my journalism jobs on my resume and my University courses on Web Design and Cinematography. When I got interviewed the interviewer said he wanted me to work in the Camera department. I said I had applied for the job in the games/movie department and asked if that job was available. He said that it was still open but thought I was more suited to the Camera department.

I ended up not getting hired, probably because I didn't show much interest in Camera's. Walmart tried hiring me for their Audio/Video department but at the time I already had a job. I didn't even need a resume I had corrected a staff member and helped a customer find the product they wanted. Apparently the Supervisor saw the whole thing and offered me a job.

Fact is it seems major retailers that carry games including EBGames/GameStop hire incompetent employees who don't even game. I have found employees who don't even own a current generation system, that is sad.

P.S- When I go to retailers I often talk to the staff especially if they don't know something. I talk to see just how much they know about the products they sell. If I see a staff member talking out their ass to a customer I almost always intervene. In fact I have been banned from a Collector store because I knew more about the Pokemon Card set then the employee.

Staff represent the companies they work for. Hire idiots and your company looks bad.

Despite growth in digital distrabution Blu-Ray is still likely to be the primary movie distrabution medium in 3-5 years (then digital will take over in 6-8) so if they want to push themselves as a multimedia hub at launch they will need Blu-Ray there just isn't any other viable option right now, HD-DVD is dead and production would end up more expensive, internet infrastructure just isn't ready for digital on a global scale there is not really any choice now. 

MS backed HD-DVD over Blu-Ray because they had a bigger stake in HD-DVD as all the interactive parts of the spec ran on a MS system where as Blu-Ray uses Java. They didn't try to push Blu-Ray on Xbox 360 as add-ons wouldn't be very cost effective and Blu-Ray addaption has been slow and DVD is still the primary medium for movies. 

And like I said before MS are not out to kill Sony they work together on far to many things, their home console devisions may be competing but the movie devision of Sony would be the ones they would be indirectly paying a small fraction of the cost of the Blu-Ray drive. The fact that money is going to Sony won't ever be a major factor in the decision ether, they will ether go Blu-Ray or all digital and all digital isn't a real option yet.

Good argument, however DVD is still alive and well.

While I believe BluRay will inevitably over take DVD, by the time it does Digital Distribution in films will be far higher. In fact digital distribution and streaming is already taking out a lot of the movie retailers. I have heard personally from the manager at my local FutureShop that their sales of physical media are dropping almost every month except the winter months.

NetFlix and such seem to be where movies are going. Unlike games you don't need to have a massive hard drive and my sister can play HD Netflix films with DSL. Yes having BluRay would open them up to some consumers. But not as many as you'd think DVD remains the primary format and even with HD will likely remain in power another 2-3 years before BluRay fully replaces it. By the time BluRay has fully replaced it as the physical format the streaming and DD film industry will be far larger as well.

So when would BluRay actually be beneficial? About 2-3 years into the Nex-box's life span. However as mentioned by the time it over takes DVD , DD in film will be big enough to compensate for the loss.

As for Microsoft's intent to crush Sony. This is based on many factors including the fact my Uncle on my American side works for Microsoft in  Redmond and used to be at their Seattle office. He told me years ago when DreamCast got Microsoft's operating system that Microsoft was going to enter the industry. He said Microsoft saw Sony as a direct threat to PC and that Microsoft thought Sony was planning to go after them. Xbox apparently was a three phase plan executed to prevent Sony from entering the PC industry.

Now would Microsoft support Sony Pictures? I don't know I have never talked to a Microsoft employee about Sony pictures. But being a division of Sony I would conclude that Microsoft probably would like to avoid giving them money if at all possible. As I said DVD was already a big move and at the time it was necessary but this new generation it might not be.

Also Microsoft has undoubtedly been watching Nintendo. Nintendo proved with Wii you didn't need a physical film format to succeed. In fact NetFlix was most successful on Wii for a while. I have no doubt that Microsoft has taken notes and this leads even further in the direction away from BluRay.

I honestly think Microsoft will have its own disk format to reveal. It may be very similar to a BluRay disk but it will be the primary format for games on Nex-Box. No I don't think they will try to make it a movie format that war is over, but look at Nintendo's success with its own formats in the past.

Audio quality will only improve. On my 5.1 setup it sounds really good. No need for me to spend extra rigt now. Also I have watched Blurays before. Of course I'm sure you will say teres a diference, but it is not noticeable to the naked eye that the picture is beter or worse. Zunes 1080p films are brilliant quality and I have Kinect which impresses alt of people wen watcing aa film. IMO The features I hav watcing a 1080p film outweigh the features Bluray offer me.

Zune - Pluses over Bluray.

Cost

Storage

No remote

No need to leave the house

Will never break

Can watch with friends over Live without needing multiple copies or beeing in the same house.

Will never need to replace my format ever again.

Bluray - Plusses over Zune

Complete audio quality

Unnoticeable minute picture quality

Does not get affected by internet issues.

Zune has many more plusses imo. And is future proof. I wont ave to change my Blurays in 5 years for a new  medium.