They could be closer to reality than expected, but Microsoft won't confirm anything
An OEM subsidiary for hardware giant Asus, Pegatron Technology, has reportedly landed orders from Microsoft itself to commence production of Xbox 360 consoles featuring built-in Blu-ray disc drives (BD-ROM). According to the Economic Daily News (EDN), these Blu-ray equipped Xbox 360 consoles could be made ready for shipment as early as the third quarter of this year. This wouldn't be the first time that word of built-in Blu-ray drives for the Xbox 360 emerged from production sources in Taiwan, though today's tidbit does provide a clearer timeframe as to when they could become reality.
While Microsoft is not adverse to supporting Blu-ray devices for its operating systems, the company has been less accomodating towards establishing Blu-ray as a key component in its console business strategy. We can imagine Microsoft will remain mum on the subject for now, if not shoot it down altogether as it previously has. The rumor will certainly be all the stronger if we do happen to come across updated details on potential Xbox 360 hardware revisions down the line.
give it a rest already...
much has been said about the 360 and blu-ray but that's just rumors, M$ won't say anything because its ego is bigger than their income and they're too proud to say "we're just copying the ps3"
which is what mostly everyone would do if he was involved in a console war with sony and nintendo...even M$...if it is true though, they'll be forced to spit it out sometime