Of course MS's attempt to squeeze a little bit more storage out of the DVD format is a sign they are worried about space as they get into the backside of the 360's life (new hardware from Sony and MS is expected in 2013 or 2014). Sony always said they had a 10 plan for the PS3 so we'll see where it ends up after a terrible start (consoles typically have a five year life span).
Let's speculate about the XBox 360's replacement, whatever it will be called.
Sure, it probably won't be here until 2013-2015. But if it's coming out by then, it means they're working on it now.
Will it be entirely online based, i.e. you download all the games from XBox Live? You gotta be kidding me.
Will it be flash memory based? Too expensive but possible, I suppose. I don't see MS cutting into profits with that kind of cost, however, when discs costs pennies to stamp.
Will it still have a DVD drive? Possibly, but the games already shipping on multiple discs and Microsoft's roll out of the new DVD format extension say "probably not". DVD is already clearly inadequate for the future.
So that means either (a) Microsoft invents a new physical format, or (b) adopts Blu-Ray.
There are many reasons why (a) is very unlikely. It would cost a lot of R&D and time and money, and even if they avoided standards organizations to push it through, think of all the headaches it would cause on the back end -- instead of using off the shelf components from the big parts suppliers to make the drives they'd have to have drives built entirely special purpose (significantly driving up the per-unit costs), the mass duplicators who stamp the discs wouldn't be able to create the media creating a huge expense and backlog of publishing lead time, etc. I seriously don't see this happening, although it would be a huge blow to piracy.
It's also unlikely that any of the promised "next gen" physical formats such as holographic discs will be ready by then, if at all. But even if ithey were, it sure would contradict all those here saying Blu-Ray will be the last physical format, wouldn't it? Further, any company producing such a drive would have to include backwards compatibility for the old formats as all new 5" optical disc formats in the past have done -- CD, DVD, and now BD. Especially if the new console is going to play old games.
Logically, MS is almost forced to adopt Blu-Ray for the next console generation, and by that time I guess they will do it very quietly. They have to have a disc that offers more space and it's very prohibitive to "roll your own" format. My prediction, they will put their tails between their legs and include BD-ROM, sort of like how they adopted HDMI after rejecting it on the first 360.
BD + linux2mac's 92" HT Screen = Steak
BD + 15" Windows Laptop = Hamburger
Sometimes a burger hits the spot more than the best steak. Sometimes you just can't get steak, like when you're in a hotel room or on an airplane.
And you've said you enthusiastically watch movies on the road with an iPhone, do you not? What is that in this analogy, Slim Jims? Cold meatballs? Canned beef raviolis? Hamburger Helper?
My laptop is for work. Not entertainment. I would hate for it to become another "iToy."
Quickly, run to your laptop and delete DVDplayer.app and the games Apple ships.
You don't know how much not playing the latest, best media conflicts with Apple's storied history. Apple most certainly is not a "business machine" company. Sure they can be used that way, but that's the reason there is no docking architecture or modular drive bay.