While it is possible, I don't think MS will go Blu at all. Maybe it's a rumor that they will, but as I was looking at LIVE, I was amazed by the sheer number of movies available for download. I thinks the HD DVD add-on was definitely a ploy to hit lightly at Sony. Folks say 'The 360 doesn't have an HD drive' and MS could just grin and say 'Yeah, the add-on.' It was smart of them not to include the HD DVD, because if and when the HD DVD player dies, MS can just wipe the HD DVD dust off their hands and focus on digital downloads.
Seriously, they'll make an hard-drive add-on that will offer 500gb to 1TB of storage for all of those digital movie's LIVE members can snag. It's cheaper than a disk and will last longer. It's the wave of the future, and not Blu. Before buying a few HD DVDs, I hadn't bought a DVD in a long time. As long as my 360 can stream movies to my TV, I could care less about the format wars.
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