You can say that downloads are the way of the future and yet still use a blu-ray drive. The internet infrastructure is not yet at a point where content of hd magnitude can be downloaded by the masses. It is unreasonable to think this and Microsoft knows this. They want to make some money on something in the meantime and plan for the future. They have already created a service that has the capability to offer HD downloads and now they are 'possibly' wanting another means of getting hd content to consumers in the meantime. I bet Microsoft, one of the few multi-billion dollar companies that are completely debt-free, would need all of you guy's advice on how it's business model should change.