Microsoft officials have officially denied any plans to incorparate the victorious Blu-Ray drive in their console gaming system, the Xbox 360. Sony might be celebrating the victory but, in Microsoft's eyes, the real winner is about to emerge. The main reason for Microsofts rejection of Blu-Ray was their belief in the real money being in digital; Xbox Live's capability of delivering movies (including High Definition Movies) and other content and allowing users to download it instantly. The online digital media, instead of physical media,  seems to be better placed in the minds of MS officials.

A good move by Microsoft?

It seems that if a consumer needs to play Blu-Ray content, they would need to invest in a Blu-Ray player. Eventually the price for Blu-Ray will be half of the Playstation 3, allowing a sensible Xbox 360 + Blu-Ray solution. As long as Microsoft keeps shelling out killer games such as BioShock and Mass Effect, there is no need for the average consumer to think otherwise.

Even though the format wars are over, the war between Online Digital Media and Physical Media has just begun. It's Sony vs Microsoft on a whole other level.