Analysts have been weighing in on Microsoft's likely strategy for its next console, nicknamed Xbox 720. Speaking to

IndustryGamers,

experts from EEDAR, M2 Research, RW Baird and DFC Intelligence have been busy predicting the company's next move.

Our+mock-up+of+an+Xbox+720+logo.

Speculation is growing concerning how Microsoft will handle advances in cloud-based gaming, as demonstrated by services like Gaikai and OnLive.But the technology has a long way to go before it can be embraced wholeheartedly by major console players. And while Microsoft has already announced cloud saves for this generation of consoles, it is widely believed the firm is not ready to completely abandon disc and hard-drives.Billy Pidgeon, an analyst at M2 Research said, "I don't expect vendors to leave physical media formats out of next-generation consoles. Cloud gaming services can't yet allow access on a scale to realize their inherent disruptive potential. I agree with Microsoft's assertion that cloud-based game delivery as a replacement for physical media is in the long term future."DFC Intelligence analyst David Cole said, "The Xbox 720 should definitely have some sort of access for physical media. The cloud stuff can open up new doors and Microsoft's strategy is all about delivering services via the box, basically it has been somewhat of a cloud strategy from the beginning. But games are entertainment and this means you need the physical presence. We can just look at the mob at retail last week as a sign of its importance. When Microsoft talks about the cloud technology in Xbox 720 I think it is often more the business/technology side versus the entertainment/marketing side."Colin Sebastian of RW Baird added, "Any smart console manufacturer will want to offer a mix of distribution points for consumers - both in the cloud and at retail stores. There is such a broad spectrum of games that consumers are playing, and there is not a one-size fit all solution."EEDAR's Jesse Divnich said, "The digital transition will be just that, a transition, and neither Microsoft nor Sony will force consumers to go 100% digital. 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 I'd expect the Xbox 720, or whatever they choose to call it, will act as 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."More quotes at IndustryGamers.