Apple thinks that Blu-ray is a "bag of hurt," now Microsoft questions the need for the format.
Speaking to Xbox360Achievements, UK Xbox boss Stephen McGill had the following to say when asked if the DVD format was holding back the Xbox 360:
I think people may have spoken about that originally, but that's long gone. I think people now recognise what a smart decision it was to keep the pricing low, and actually Blu-ray is going to be passed by as a format. People have moved through from DVDs to digital downloads and digital streaming, so we offer full HD 1080p Blu-ray quality streaming instantly, no download, no delay. So, who needs Blu-ray?
Yes, digital downloads are great, and satisfy that part of our brain that desires instant gratification. But downloading HD isn't trivial unless you have a solid internet connection, bags of bandwidth and no restrictions. Also, even with all that in place, pumping that content to devices that don't have a wired connection to the internet adds another layer of potential problem.
Yes, streaming is good for those who can make use of it, but sucks for those who can't. Say hello to a new form of the digital divide.