Seems that not everyone knows about this, but all Xbox 360 games DVDs are NOT manufactured by the publishers, they're manufactured in Microsoft factories (one of the forms of income Microsoft earns from the games), therefore if Microsoft were to adopt Blu-ray games, it would not only cost them money for the license, but also money to buy whole new equipments unlike the HD-DVD which only required replacements for a few components( One of the reasons why Microsoft backed Toshiba). Blu-ray being still in its early years will have extremely expensive copying equipments that i feel wont benefit the Xbox 360 sales.