The rumor is that the next Xbox will have a Blu-ray player built in.
Get out your scorecards: We have yet another Xbox/Blu-ray rumor.
Microsoft has been saying that it has no plans to add a Blu-ray player to the Xbox 360. Why? Maybe they still feel scorned by the whole HD DVD thing. However, Digitimes says that Lite On might be working on something to give those console owners that extra HD love.
Of course, it’s supposedly for those that buy the next version of the Xbox. Current owners, you’re out of luck. Although… who knows? This is assuming any of this report has a grain of truth. Microsoft is mum as usual. Why is everything so darn secretive?
Lite-On says that will ship the Blu-ray drives in the second half of 2008. Take it as law or with a grain of salt.

I have an Xbox360… and I just bought a PS3.. so I’m off the hook of being concerned with MS coming out with a new console with BD capability… besides… you think MS would want to pay royalties to one of their main competitors, Sony? And even if MS did pay, I’m sure Sony would jack up the royalty price.
This came out on April 1st on other sites.
Are we all sure it is not an April’s fool’s Joke?
Agree w/ AJ on the secrecy. Blowing the whistle now is bad business sense.
Making such announcements now concerning the “next gen” essentially kills sales of existing hardware. Of course they aren’t going to say anything @ this time. There’s plenty of 360s in stores now that MS & the retailers need you to buy.
Better yet, why not try & compete a bit better with Nintendo (who’s kickng everyone’s ### with the “subpar” Wii), ditch HD movie playback altogether—-c’mon MS, you know downloads are the future : )—-cut the price & concentrate on solid games & games only.
Become the HD capable Wii, so to speak.
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Microsoft is already paying royalties to Sony for use of BD in use with their OS. So It is not unheard of for companies to sleep with the enemy if they think it will bolster sales. Apple has recently done so with their MS active sync on their iPhone. I know I would buy a BD player for my 360 if it was ever offered.