What is Microsoft's New Storage Format??

Edge is reporting  that a new 360 dash update is due in, but unlike the last uneventful 'Hulu' update which only applied to the U.S., this new update adds Paypal as an option (huge win for me) as well as a 'new game disc format' which allegedly contains additional storage.  I'm rather intrigued to see what exactly Microsoft has pulled off with this new format.   There are several additional formats of DVD beyond the current DVD9 which could theoretically expand the 360's storage capacity up to 17 gigabytes (presuming the existing drives can read them, of course).  While this is still no comparison to BluRay, adding DVD14 capability (17GB) would extend the life of the 360 for at least another year or so as most current AAA games rig in at 10-15 GB.  It would also put the 360 in reach of BluRay busting games similiar to 'Metal Gear Solid 4' where only 2-3 discs would be required to level the PS3.