The long-rumoured Blu-ray version of the Xbox 360 has never seemed less likely after Xbox product director Aaron Greenberg cited the decision to stick with DVD as one of the key reasons why Xbox 360 has performed so well at retail.
Being $100 cheaper than PS3 is part of the reason we're nearly twice their installed base,” Greenberg told CVG.
Sony bet on the physical disc, and there are costs associated with that. The fact that we're able to offer a console starting at $199 is a benefit of not being burdened with that cost.
For us, our bet was on digital distribution, that was the future – the ability to play 1080p movies with no disc, no download required; we have the largest movie and TV library, the largest HD library of any console.”