Here's a Japanese link apparently if anyone can read that:

http://www.itmedia.co.jp/news/articles/0704/27/news082.html

It reads the following apparently:

 There is bad news on the horizon for X-Box 360's HD-DVD Drive owners as Peter Moore told Rachel Konrad on a recent trip to Japan while entering negotiations with Pioneer. Microsoft's Xbox corporate VP of worldwide marketing and publishing Peter Moore told Japanese site ITmedia that the imminent release of the Blu-ray Xbox 360 peripheral could appear for the system before Christmas. Moore admitted that Microsoft's opinion on HD-DVD as the Next Generation format winner is bleak with the worst-case scenario being a repeat of the Beta vs.VHS war of the '80s. Moore also added Microsoft is giving the consumers the most cutting edge technology out there and In this moment in time Blu-Ray is that.

As per usual Peter Moore couldn't help but have a go at Sony and the PS3 "However, he suggested that whatever the outcome of the HD-DVD/Blu-ray war, the Xbox 360 can adopt the dominant format since its uses an external drive. He also suggested that it's a weak point for PlayStation 3, saying Sony's system is stuck with only 1 format. Microsoft announced the Blu-Ray peripheral will connect to the Xbox 360 using one of the system's USB ports. Moore once again confirmed that the Blu Ray add-on for the Xbox 360 is only for watching movies, and there are currently no plans to use it for games, nor are there plans to release an Xbox 360 with an internal Blu Ray drive.

I cannot say 100 percent as I am taking this translation from elsewhere and if someone can read that and confirm the translation is not off or anything it would be great.  It's looking bad for HD-DVD right now.

It makes sense (a LOT of sense) from MS's point of view - it eliminates Sony's advantage(?) with BluRay - people with 360's can watch BluRay movies if they want to. Sony will be a little happy (good for BluRay), but its generally a move by MS that Sony will find hard to counter. Takes BluRay out of the console equation...

It would be interesting (although unlikely) if Microsoft offered 3 options, HD-DVD $199, Blu-Ray $199, and Dual Format $299 ...

Sony will be very happy, every Blu Ray player even the one on the 360 is a plus for Sony, this is a victory for them. It also doesn't make them look so overpriced with the PS3 when you get the Blu Ray for the same price on the other console.

uh... i just did a language tools translation from google... no mention of peter moore anywhere in it http://translate.google.com/translate?u=http%3A%2F%2Fwww.itmedia.co.jp%2Fnews%2Farticles%2F0704%2F27%2Fnews082.html&langpair=ja%7Cen&hl=en&ie=UTF-8&oe=UTF-8&prev=%2Flanguage_tools

 How does it take Br out of the equation ? PS3 devs have 50 gigs of storage to play with, 360 devs dont. 

Ms adopting Br shows that their first choice was wrong and many of the 360 owners got stuck with a $200 add on that wont have new movies released on it.  Unless MS plans a free exchange program (not gonna happen)

It makes Sony look good while makes MS look bad, and once agian it looks like MS screwd over their early adopters first the "elite" now a "BR add on" 

how does that take blu ray out the picture?? if blu ray wins microsoft will have to add another add on periphial... Worse case release a blu ray capable console just so people can enjoy their movies

The google translation doesn't even remotely resemble the above translation. It doesn't even seem to be an article about hd-dvd or blu-ray. It seems to be an article about a Kutaragi retiring from Sony.

I believe this is the original article since it's by Rachel Konrad of the AP.

http://www.cantonrep.com/index.php?ID=352696&Category=20&subCategoryID=

PlayStation architect to retire amid broader struggles for Sony
Sunday, May 6, 2007
By RACHEL KONRAD
AP Technology Writer

SAN JOSE, Calif. The chief architect of Sony Corp.’s flagship PlayStation game console will retire in June as the company struggles to retain dominance in the video game industry and revive its flagging reputation as an electronics and entertainment pioneer.

Ken Kutaragi, 56, an icon among gamers, will step down as Sony Computer Entertainment Inc.’s chairman and group chief executive. He will be replaced by Kazuo Hirai, now president and chief operating officer of the division.

In December, Kutaragi was relieved of day-to-day responsibilities as president of the video game unit but stayed on as its chief executive and chairman.

Kutaragi’s most recent brainchild, the PlayStation 3 console, came out in November but was marred by embarrassing production shortages and a $600 price tag that some Sony fans said was too steep. For the past several months, Sony has resorted to giving away free game titles and other marketing gimmicks to spur sales.

Sony has also struggled to expand beyond the young, male demographic of so-called “hardcore” gamers. Investors have been grumbling for several quarters that Sony has failed to attract women, young children and older gamers to its products, and its market share has shrunk as a result.

Problems related to Sony’s limited demographic came into sharp focus late last year, when Nintendo Co. launched a rival game console, the Wii, for about $250.

THE COMPETITION

The device — which includes a diminutive, wrist-mounted controller and a console that’s skimpy on realistic graphics — has become a surprise hit among girls, suburban mothers, senior citizens and other people who have never considered themselves gamers.

Sony shipped 1.84 million PS3s worldwide through Dec. 31. In the same period, Nintendo sold 3.19 million Wiis.

The company — maker of the iconic Walkman — hasn’t engineered another transcendent blockbuster. It ceded its leadership in portable music players to Apple’s iPod.

But David Gardner, co-founder of investment group The Motley Fool, said the botched PS3 launch was the most unforgivable mistake.

‘OBVIOUS MISTAKE’

For years, PlayStation sales buoyed the company while commodity electronics limped along with razor-thin profit margins. When the PS3 came out, the high price and paucity of cool games to accompany it prompted consumers to avoid or postpone buying the console.

Sony will have more unique games for the PS3 in the fall — but by that time, the Wii and Microsoft’s Xbox 360 will have sold even more units.

“PlayStation was their killer app, but the only PS3 title that’s good and unique is ‘Resistance: Fall of Man,’ ” said Gardner, an avid gamer and a financial analyst in the sector. “That’s driving me crazy. I don’t know who is to blame for that, but it’s the biggest, most crushing and obvious mistake they’ve made lately.”

ckmlb you clearly posted the wrong link... This is the one you wanted http://plusd.itmedia.co.jp/games/articles/0601/10/news008.html I think all he is saying is IF BluRay does win MS will just release a BluRay Add on, but if HDDVD wins Sony is in deep trouble.

This news is very very old.

I did say I got it from another site and couldn't read the page of the link so it's possible they had the wrong link. Important thing is the article is there.

If it says there is a guaranteed Blu Ray add-on coming to 360 this is not old news.