According to sources at MCVUK, Microsoft has been telling its development partners that the Next XBOX will not come with an optical disc drive. The information is apparently privileged and locked under strict NDA, but it somehow managed to get out anyway.
However, the source reports that Microsoft will offer compatibility with some sort of solid-state card storage, similar to the PlayStation Vita. It is unknown whether this storage will be in a proprietary format or a standard format like SD. Assuming the information is correct, retailers like GameStop can continue to stock physical copies of the games on the next XBOX, but they will not be in the form of DVDs or Blu-Ray. This means games will come in smaller cases may have lower manufacturing costs, like the PS Vita.
The information is in line with prior speculation that Microsoft is moving away from physical formats to embrace digital downloads via its XBOX Live service, effectively cutting out the middleman at the retailers.
The company also issued a statement to MCVUK that amounts to saying that they're working on something.
"Xbox 360 has found new ways to extend its lifecycle like introducing the world to controller-free experiences with Kinect and re-inventing the console with a new dashboard and new entertainment content partnerships. We are always thinking about what is next for our platform and how to continue to defy the lifecycle convention. Beyond that we do not comment on rumors or speculation."
We expect Microsoft to make a proper nnouncement of their new console at E3 next year, if not sooner.
Source: MCVUK