Microsoft Xbox UK boss Stephen McGill told Xbox 360 Achievements in an interview that Blu-ray is going to be passed by as a format, as people have moved on to digital downloads and streaming:
Do you feel that the DVD format is holding the Xbox 360 back in terms of its lifespan? A lot of people are saying that embracing Blu-ray would extend the 360's shelf life.
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?
Microsoft isn't the only firm that sees digital as the future, Apple for instance will soon start shipping its second-gen Apple TV, this device has no optical disk nor hard disk drive and relies fully on streaming.