As other have mentioned it'll likely use Blu-ray and a large harddrive (200+ gig) but I don't think we'll see it until 2011 or 2012.

I think a combined blu-ray/hd-dvd.

Blu-ray for movie playback and hd-dvd for games. It would kill piracy on the next xbox.

blu-ray.

They would be stupid not too. They're system is already HD enabled and bluray is the now default HD media, only real option.

First of all I seriously doubt MS will release the next Xbox in 2009. I'd say October 2010 at the earliest.

Blu-Ray or no Blu-Ray will depend on what route MS plans to take with the next Xbox. Will they continue fighting Sony with a multimedia hub, or will they walk their own path as Nintendo did with Wii?

Blu-Ray is the only option to fight off PS4 as a multimedia hub. Otherwise I'd say MS could go for a proprietary format.

Online distribution is an option, depending on when MS will release their next Xbox.

By March 31st 2008 Microsoft would have to decide whether they were launching by the end of 2009 because developers will need at least 12 months notice before the launch of the system to provide adequate launch games; this means that a 2010 launch is far more realistic at the moment (possibly 2011, depending on how 2008 goes).

By the time the next system does launch the priemium on Blu-Ray drives will be minimal, and solid-state hard-drives will be far cheaper because of the vast quantity produced for laptops; it is possible that they might stick with a conventional hard-drive (potentially in the 2TB range) if they decide to increase their focus on downloadable content.

 If the next consoles rely on just downloading the game, then how much different would that be from when there was negativity against Sony contemplating the use of only being able to play your brand new game on your PS3 and not anybody else's. I mean, isn't that what Xbox Live is doing with XBLA?

Dual Layered BluRay. Oh and dont expect a new Microsoft system until 2010-2011.

No takers for HVD?

Sheesh.

Blu-ray for discs, but hopefully they would allow you to save anything on your own hard-drives. I say at the earliest 2012 for the next console with the current momentum the 360 has.

I'll second the HD-DVD/Blu-Ray combo drive. Not to support a dead format but you will have a huge block against piracy right there, and the tech is fully fleshed out and being sold for less than nothing.

I imagine we will see a 300 GB hard-drive built. I could easily see a special flash drive to take to store kiosks to buy games that way. But that would only be in addition to a disc drive.