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Microsoft's new console will not rely on download-only content, as publishers don't make enough money from this to make it a worthwile venture, according to EEDAR analyst Jesse Divnich.

The XBox 720 had been suggested as not needing discs at all, especially given the success of programs such as Steam, but given the small revenues generated from this source, such a thing seems unlikely.

Divnich told Industry Gamers: "The digital transition will ultimately be at the choice of the consumer and Microsoft and Sony will continue to support physical media until the mass market has reached the tipping point of acceptance on digital.

"Right now, only about 10% of console software revenue occurs digitally and it would be inefficient for either manufacturer to accelerate that to 100% through a cloud or digital only environment."

He continued: "I know companies like Apple forced their consumers to go 100% digital, but keep in mind that at the time Apple was still emerging as a market leader in the music space.

"They understand that it would take years to go from zero to 100MPH. Microsoft is already the market leader and it would be detrimental to their current success if they hit the reset button and forced consumers into an experience they may not be ready for."

As a result, Divnich expects the 720 to be: "a true hybrid console, supporting both physical and digital media with the long-term hopes that they can provide enough incentive and value to accelerate that transition."

It is rumoured that Microsoft will unveil the 720 at the 2012 E3.

Forty years of games consoles...