For those talking about licenseing costs to Sony for blu ray, they could just do what Nintendo has done with the Wii U and design there own version of it to avoid the fees.
A couple of other users have already pointed this out in the thread, so I'll do it again:
*** SONY DON'T OWN BLURAY ***
They would be licensing it from the Blu-ray Disc Association
http://en.wikipedia.org/wiki/Blu-ray_Disc_Association
The licensing costs are still going to be far cheaper than using memory chips or creating a new proprietary format.
Blu-Ray won the HD format war, it's only win-win for all involved to have a Bluray player in the next Xbox. Just because Sony is a rival to Microsoft and they are part of the Association, doesn't mean they have some kind of childish objection, or visa versa with Microsoft.




