Remember at the end of the day Microsoft is in it for themselves, right now everyone is in sour grapes mode and they'll denounce Blu-ray till they're blue in the face (sorry no pun, well maybe.) Toshiba will have to produce a BD player to recoup funds lost, just like Sony had to produce VHS VCRs after Betamax lost, no company likes to lose a share of the market and the board of directors and investors won't let it happen, Toshiba will eventually produce a BD player, Microsoft might push for downloads, but in the end if the market holds up Blu-ray, even mighty Microsoft is going to have to bite the bullet and release a BD for X-Box, or lose shares to PS3, I doubt Mr. Gates will allow that.