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Adding Blu-Ray would be stupid. Not worth it driving up production costs when it wouldn't urge people to rush out and get a 360 any faster than they currently are. If MSFT is truly interested in making their console more desirable*, then lower the f'ing price! $100 cut on every model. If not at once, then maybe $50 cut now, $50 cut in October. If that doesn't push sales then nothing will.

*not that the 360 isn't desirable as it is. Sales are up 60-70% over last year. They really don't have to do anything, I'd just like to see what a price cut in NA could do.  The longer MSFT waits, the easier it will be for Sony to match. Is cutting the price now (end of May) worth selling an additional 30,000+ consoles a week? I'd say so.