This rumor has been around since 2008? I thought it relatively recent.

Still waiting for the next generation to see how big the storage on disc's will be. But on topic, i think this is kind of a smart move by MS i guess. If they try to charge an arm and a leg for it ( MS HDD's anybody?) then it won't really help them in sales terms. But if they price it right maybe around 50-70. If its over 99 way overpriced. But to be honest they should have attepted to put blu ray apart of the 360 instead of waiting until now. Also this statement is based on if this rumor turns out true. But we have to wait to here from MS to know anything

Not again...
For MS, it would be a betrayal to their DD commitment.

Netflix streaming is very nice.  This is how we started to watch Dexter.  Nice picture and nice sound.  Fortunately, only the first 2 seasons were available for streaming.  We were "forced" to watch the next two season on Blu-Ray via Netflix mail.  With the right equipment, the video and audio quality of the Blu-ray version blew away the Netflix streaming quality.  And thankfully, we have the right equipment.

Not surprising. Even back when they were promoting HD-DVD, Microsoft did say that if Blu-Ray were ultimately successful, they would consider making a Blu-Ray add-on to the 360 as they did with HD-DVD.

But what if it's just for Blu-Ray movie playback while all games are DD only?

Ugh, man, some rumors will just never die will they? Next week Metal Gear Solid 4 is coming to the 360.

MS is building a huge catalog of movies/shows to be offered digitally. BR is not it.

The Blu-ray drive will most likely be a simple add-on for the console, as the idea of segmenting the user-base is absolutely insane to say the least.

Insane indeed. You'd need to release two versions of every single game and hope developers don't dump dvd-only X360 owners altogether. Add-ons aren't really the way to go. If anything, this might point to the next Xbox supporting the format.

And where are those movies and shows right now?