Wedbush Morgan's Michael Pachter's said he doesn't think the idea of a third-party media unit - developed by the likes of Philips - with Xbox 360 functionality is a viable proposition.
The idea was rumoured last week.
"It doesn't sound likely to me, as the 360 is hardly as ubiquitous as, say, the DVD drive," said Pachter, speaking to GamesIndustry.biz.
"I think it may be possible as a way to penetrate more difficult markets like Japan, but don't really see how it would work in practice in other markets.
"To add 360 functionality to another consumer electronics device, such as a Blu-ray player, the manufacturer would incur relatively significant additional cost. That would place the hybrid device at a disadvantage," he added.
More through the link.