The next XBox and media

I think the next XBox will have to include a proprietary flash-card format (yes, a cartridge) much like the Sony NGP will have and many Nintendo consoles have always had.   This is because the DVD format is already getting very tight for current-gen games and Microsoft would never license the Blu-Ray format from the Sony-led consortium.  The DVD player will still be in the next XBox for compatibility purposes and maybe even for new games, but publishers will have the option of this card format for releasing games.  An 8 GB flash card can be had for $7retail already and I think the 16 GB are close to dropping into that range soon as well. 
 
This is my speculation, at least.  We'll see.

I think the next XBox will have to include a proprietary flash-card format (yes, a cartridge) much like the Sony NGP will have and many Nintendo consoles have always had.   This is because the DVD format is already getting very tight for current-gen games and Microsoft would never license the Blu-Ray format from the Sony-led consortium.  The DVD player will still be in the next XBox for compatibility purposes and maybe even for new games, but publishers will have the option of this card format for releasing games.  An 8 GB flash card can be had for $7retail already and I think the 16 GB are close to dropping into that range soon as well. 
 
This is my speculation, at least.  We'll see.

Or they can release all their consoles with 250GB.

Flash memory is still way more expensive than disks. Not to mention that developing a propitiatory format would likely cost far more than licensing an existing format. I think it'll most likely use Blu-ray. It's too early for non disk based media, and I don't see them going with anything other than the dominant media format. I don't think Microsoft will have any problems with licensing it from the Blu-ray disk association. While Sony does have a finger in that pie, Sony is a big company, and it's not like they're giving money directly to SCE. Microsoft probably don't see Sony as rivals, they'll see SCE as rivals, which is a small department within a much larger company. MS will be far more worried about having a dominant console next generation, and not who get's the money from licensing agreements.

The bigger question is if Xbox 3 will have BD.

I think they'll probably push the digital stuff, but still license blu-ray to play it safe.

I can't see them licensing Blu-Ray but they could modify the already existing tech of HD DVD, which has the large amount of storage on a solid (though dead) Tech. Would be considered MS own propitiatory format and they wouldn't have to invent a new format or pay for the license.  They would need to rebrand to leave behind the "Format Warz".
 
 edit, second thought, they might just go Blu-ray just to still keep the idea of being an All-in-one media system. 
Just a thought. 

"  ...Microsoft would never license the Blu-Ray format from the Sony-led consortium... "

" I can't see them licensing Blu-Ray but they could modify the already existing tech of HD DVD, which has the large amount of storage on a solid (though dead) Tech. Would be considered MS own propitiatory format and they wouldn't have to invent a new format or pay for the license.  They would need to rebrand to leave behind the "Format Warz".  Just a thought.  "

Who knows how far disc storage will have come when the next consoles arrive. Blu-Ray was developed a couple years prior to 2006 so you'd bet your asses that by the time the next consoles come, digital storage would have underwent a lot of developments. 
 
The question though is the price... it may be more in Microsofts interest (AKA cheaper) to modify the current system, or even use Blu-Ray, rather then expand into a new market like the cartridges you're thinking of. However with 3DS cartridges fitting around 2 GB (and that number will likely increase with time, just like the DS) I can easily see a larger cartridge fitting around 10 GB in a few years. Hell you can right now buy tiny Micro SDs that are 2 GB. Just think, 5 of them. And barely any games (save for some PS3 games and some multiple disc 360 games) exceed 10 GB as of right now.

ugh your all fools! Dont you understand that it doesnt matter what the next Xbox has?! The Dreamcast 2 is going to bring back HD DVD so thats all thats going to matter!

" @MattyFTM: Many times, actually:       
 
http://gizmodo.com/#!5645716/microsoft-blu+ray-is-going-to-be-passed-by-as-a-format  
http://www.businessinsider.com/2009/1/microsoft-blu-ray-never-coming-to-xbox-360-msft   
http://www.toptechreviews.net/games/microsoft-blu-ray-is-not-the-future-of-home-entertainment/ "

" @MattyFTM: Many times, actually:       
 
http://gizmodo.com/#!5645716/microsoft-blu+ray-is-going-to-be-passed-by-as-a-format  
http://www.businessinsider.com/2009/1/microsoft-blu-ray-never-coming-to-xbox-360-msft   
http://www.toptechreviews.net/games/microsoft-blu-ray-is-not-the-future-of-home-entertainment/ "

umm....I like the idea of digital but people out there still ain't all connected to the internet. The next console will have a physical format, lets be real here for a sec.

i think that they are going to be using blu-ray. it's what is going to be the new thing to own. i think they might even have digital but i'm not to fond of digital on consoles. you don't really know what is going to happen with consoles in the future.

Microsoft will end up using Blu-Ray. First of all, licensing technology from someone you compete with in other markets isn't exactly uncommon. Sony licenses Windows to run on their PCs after all. There are plenty of other examples, like Toshiba and Sony competing head-to-head in the HD-DVD vs. Blu-Ray format war while jointly developing Cell with IBM. A second reason why MS will license Blu-Ray is because it will take a competitive advantage away from Sony next gen.

blu-ray will not be used because it is a sony based product. There is a clear cut conflict of interest when considering the playstation versus xbox360. This was a clear tactic of sony when looking at their product lineup. What they didnt quite expect is the big move to digital download services. This is apparent when considering they're release of psp and they're failed format of umd. 
 
If microsoft will move to any front it will be a serious digital based system with online with a good chance of some proprietary dvd/hd-dvd disc based system for disc retail games considering the stronghold retailers have over the video game economy as of yet in order to sell consoles. 
 
Microsoft will build off of their zune service of media with the already digital game service and push for digital download more even now the dedication to online game download is shown with the current XBLA and full xbox360 download services.

If they don't use Blu-Ray I think they're shooting themselves in the foot.

I'd say they'll definitvly include Bluray. With the Xbox360 they went for HD-DVD, but now that Bluray has without a doubt won the race, its kind of a must-have for a new multimedia device and the main reason for not adding it to the Xbox360 was probably just price and that they wouldn't be able to use it for games.
 
Online downloads surely will advance and HDDs are big enough, but broadband is still not widespread enough that you'd want to force everybody to download 25GB through their 2mbit pipe. Flash still seems far to expensive to give you the 100GB or so that a multilayer Bluray could. They could of course go with something completly proprietary or recycle HD-DVD, but normally it should be far cheaper to go with established tech then to develop something from scratch.