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MS make asswads of themselves if they do this, having hacked at Sony all along for integrating BluRay in the PS3.
It'll be the most hypocritical and idiotic move in X-box history, and not even avid MS supporters will be impressed...
Move away from HD alltogether is what they should do, since they clearly state that it's not needed yet or at all. I find it strange that a software company opposes development in media, but that may be stupid of me, I don't know if anyone agrees.