However, if the next-generation consoles enjoy a lifespan similar to that of the current crop, then it is likely that internet speeds will have improved enough over that time to make disc-free consoles practical.

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Such heterostructures are widely employed to make the lasers in compact-disc players and retailers' laser scanners.

ECONOMIST: Microelectronics

They were expected to make up a bigger slice of disc sales after Blu-ray won the backing of Hollywood studios earlier this year over the rival HD-DVD technology.

WSJ: Retailers Slash Blu-Ray Player Prices

That's because DVD-makers like Germany's Bertelsmann or Canada's Cinram have to buy whole new machines for producing Blu-Ray discs, but they only have to upgrade their current disc-making machines to make HD DVDs.

FORBES: A Blu-Ray Of Hope For Singulus

That security could one day make SD cards as common a medium for distributing digital content as the compact disc is today.

FORBES: Ten O'Clock Tech: Stamp-Sized Storage

American rival Warner Music Group, which had been expected to make a counter-bid for EMI last year, has also attempted to restructure in order to stem declining compact disc sales and capture more digital revenues.

FORBES: Magazine Article