New Microsoft Console Xbox 720 Won't Have Disc Drive?

Will Microsoft's next console have card storage?

The latest rumor surrounding Microsoft's next console is that it will not have a "optical disc drive", instead it will have some form of a card storage. According to the article:
"some sort of interchangeable solid-state card storage, although it is not known whether this will be proprietary or a more standard format such as SD."
In addition, MCV also reported that the system is due out some time in 2013; this seems to be the consensus among most of the Xbox 720 rumurs. However, having no disc drive is contrary to what we heard two months ago when another rumor about the Xbox 720 popped up saying it would use Blu-Ray technology. Not to mention this flies in the face of what Microsoft is trying to do by being a all encompassing entertainment box. By moving to no disc drive Microsoft would be cutting out a huge segment of the population who still want physical media. Microsoft did respond to the rumor by saying:
€œXbox 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.€
Like I said I think it is to early to get out of the physical media business just yet, but it is a matter of which rumor you believe at this point. Do you think Microsoft would move forward without a disc drive in their new console or will it have a Blu-Ray player in it?
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I have been playing video games all my life but not only that I enjoy discussing them just as much as I love playing them. Therefore after going through college to get a criminal justice degree I became a freelance video game writer.