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This rumor comes up every once in a while. It's not true. Even if it was it wouldn't even matter. It wouldn't give Microsoft and edge against the competition. In fact, it would give Sony and the PS3 the edge. Why? People will say "wow so the had this day 1!? damn I was missing out".

I don't expect the Xbox 360 to ever get any sort of Blu-Ray attachment. Too late in the lifecycle. I do however expect the Xbox 720 to have Blu-Ray support for movies and games.