Microsoft previously offered the HD DVD player as an add-on to the Xbox 360.
Soon, Xbox owners could be reaping high-def rewards—and we’re not talking about those with the HD DVD add-on.
Sony is currently talking with gaming rival Microsoft to make a Blu-ray drive for the Xbox 360. While a new drive may help spread the adoption of Blu-ray via the gaming geeks, it could also level the playing field between the two consoles.
There’s no word on when or in what form Microsoft might add on the feature. It might be integrated into a new, premium console—which might sting existing Xbox owners… especially those that invested the extra cash in the HD DVD add-on.
Naturally, Microsoft has no comment.
Via the Financial Times (registration required)

PS3 fanboi are grasping at straws, but no matter-
Spewing crap like that just makes you sound as ignorant and petty as the person who started flinging the FUD. You have one loser posting garbage and you fault the entire PS3 enthusiast community?
Anyway… here’s a Steve Ballmer quote from Mix08 on MS & Blu-Ray.:
He said Microsoft will work with the Blu-ray next-generation DVD format in some form following the demise of Toshiba’s HD-DVD, which Microsoft previously supported. “We’ve already been working on, for example, in Windows, device driver support for Blu-ray drives and the like, and I think the world moves on. Toshiba has moved on. We’ve moved on, and we’ll support Blu-ray in ways that make sense.”
Note that the 360 specifically isn’t mentioned, but we’ll see.
Source:SeattlePI
“This is a false rumor. Xbox 360 is physically not capable of decoding 40 Mbit/s H.264 video as required by Blu-Ray specification.”
If the PS3 can do it, certainly the 360 can. And, being an external device with it’s own power supply, would do so more efficiently (presumably).
PS3 fanboi are grasping at straws, but no matter—the 360 was never marketed (nor pushed) as a next-gen movie device as mandatory. Therefore, the fan base may not care too much, satisfied with superior gameplay.
Well it does take more cpu power to run AVC over vc1. Don’t quote me on this but I think it uses up to 50% more power. That’s including PIP though. It was posted in the avsforums from one of the insiders possibly amir. Can’t find it though.
Anyone besides that I’d like to see bluray added into the xbox just so we can start getting a HD format pushed
I guess Sony is trying to give MS something that will make their hardware to work harder, causing the system to overheat or give the RROD. LOL
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It is not going to happen since Microsoft is having problems making compatibility drivers for Blu-Ray drives on PCs which causes the PC to crash. After they fix that then maybe we’ll see it on the 360 but I hope not since Blu-Ray is not all that good. I can get the same quality by upconverting my DVDs next to using Blu-Ray.