http://www.product-reviews.net/2008/05/05/microsoft-orders-xbox-360-with-internal-blu-ray-drive-from-asustek-subsidiary/

We heard on March 6th 2008 that Sony was in talks with Microsoft about an Xbox 360 with a Blu-ray drive, then we heard on March 14th that Xbox 360 said no to Blu-ray as they wanted to focus on digital downloads. Just a couple of weeks after that we heard that Lite-On were going to develop a built-in Blu-ray Disc drive for a new model of Xbox 360, this is after Microsoft crushed the previous rumors.

Today its being reported from a Chinese newspaper called “Economic Daily News”, that Microsoft has ordered an Xbox 360 with internal Blu-ray drive from an Asustek subsidiary. The subsidiary is called “Pegatron Technology”, and they say the order has come direct from Microsoft.

When you hear many rumors like this from many sources, it tends to leave you thinking, “Something Blue is going to happen”. Microsoft did not deny the Lite-On Blu-ray rumor and they have not said no to this latest news. To add to the excitement, it’s also being said that the new Xbox 360’s with built-in Blu-ray drives could be shipping between July and September this year.

Since HD-DVD lost to Sony Blu-ray, it’s obvious that the 360 could do with some sort of Blu-ray option, internal or external. Now would 360 owners dump their current console for a new one with Blu-ray or are they happy with high definition downloads?

Source: Read

lets se what happens, but I think its apparent from Na sales the Blu-ray didn't do much/anything for Ps3 there, as it increased around 15K in one week then went back to usual levels

man it this comes true, it is a huge pile of stupidity on MS' part. 360's life half over and then put a bunch of money into a new drive that would not have any direct help on your sales or gaming capabilities.

I mean they can't put games on bluray discs. That would snuff out 18m+ current users.

I won't ditch my 360 elite for a new model. The games will still run on normal dvd's so there is little point i think.

Adding another model for the 360 would increase the number of SKU's to 4 which is abit much and could be confusing for consumers.

An external blue ray drive is probably the most plausible but considering the hd drive addon didn't sell much, i doubt they will add another with no prospects for huge margins of profit.

I think Microsoft is best off pushing for downloadable movie content.

I think this deal you wrote about is for Microsofts next console which would make sense as blue-ray should be used on the xbox 720 without a doubt.

BR is a good point in NA (according to me)

the main question is "for how much" can u get the Blu Xbox360

MS's main concern has always been profit! They're even willing to lose market share to keep the console profitable...

So how is adding a Blu Ray player going to help them make money??

If the 360 w/ Blu Ray and the PS3 are the same cost then which do you think those 100 million Playstation 2 owners who havn't upgraded will choose??

(Hint: Starts with "P", and is somewhat B/C with PS2 games)

Can you imagine an Arcade SKU w/Blu Ray for $199??

What about the 18.5 Million consoles without Blu Ray Player, will they make Blu Ray and DVD versions of games?

Do we really expect MS to pay Sony royalties for every 360 w/Blu Ray player sold??

None of this makes any make sense, its the complete opposite of what we've seen from MS. Its stepping away from Digital services, its financing your competitor through royalties, its snubbing ALL their current customers, and most importantly for the bean counters at MS HQ - its INCREASING COST!

Just found this article on gamepro.

Company says it will not be using Sony technology in its "game console."

"As we have stated, we have no plans to introduce a Blu-ray drive for Xbox 360," said a Microsoft official in an email to GamePro on Monday. "Games are what drive consumers to purchase game consoles, and we remain focused on providing the largest library of blockbuster games available."

The statement comes amid persistent reports that Microsoft will release a Blu-ray drive for Xbox 360 given the discontinuation of the console's now defunct HD DVD drive.

On Friday, the Economic Daily News (via Digitimes) reported that Pegatron Technology has secured an order from Microsoft to manufacture Xbox 360 models with internal Blu-ray drives for release this fall.

like add it to a 360 you already own?

@superchunk

The Sega genesis had crap added to it as well didn't it....ages after launch..

I smell a de ja vu...

MS has already been insulting launch buyers by adding in HDMI, a year later...

at least SONY made later models inferior & not superior to launch ones....lol

@darth

LOL, didn't sony just add the last gen feature "rumble" to the PS3?  Please don't be stupid, at the time Xbox 360 came out HDMI spec wern't finallized, neither was HD and blu-ray. 

MS goal was to get 360 out before PS3 and while I do have issue with their shotty designs and console reliability, not having HDMI and have it added later is not as bad as Sony proclaming that rumble was "last gen" features only to have it added (just now for extra $50.00) or to tout their backward compatibility only to have it removed to save money.

My neighbor just got PS3 and he is not a hard core gamer (he only play sports games and blu-ray was the main selling feature) but he was totally shock that PS3 40gb did not play any of the PS2.   His PS2 died and he was thinking PS3 40gb could also play PS2 games.   He was confused because my "older" 60gb PS3 could play PS2 games but his "newer" model could not.  I told him just buy a new PS2 ... they are dirt cheap anyway.

 MS might have some bad mistake, but HDMI or HD exclusion is not one of them.   360 is a game machine and for that I think it is truly excel.