http://www.gamepro.com/news.cfm?article_id=182288

^Check out the thread.

Microsoft has "no plans" for Xbox 360 Blu-ray drive

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.

I say expect Blu-Ray XBox 360 drive or Blu-Ray add on to be released within 6 months.

So if Microsoft released a Blu-Ray disc XBox 360 this could take care of the storage space restrictions of the DVD format increasing storage from 7GB per game disc to a huge 50GB per game disc. But Microsoft would have to pay money to Sony because of Sony owning control of Blu-Ray format. Sony invented Blu-Ray format.

*Fixed 

If its released it wont be for games. Just for the movies. I think it'd be better if they continued to push digital distribution personally.

yes it will be released but not for gaming it will be like the dreaded megaCd type addon called the hd-drive lol

addons are crap, all in one is better

Yes, also the developers of the 360's best selling game Rockstar stated they will require more storage for their future games. Non linear open world games certainly aren't suitable for disc swapping.

BTW, a 360 DVD disc can hold no more game data than a few hundred megabytes less than 7 GB, not 8.5 GB.

Microsoft is in a bad position right now, on the one hand developers demand more space and are making sacrifices for their current games, but if they do this the current install base may become upset, as they would need to buy yet another upgrade (like harddrive, Wi-Fi, XBox live subscriptions, etc). But they swallowed unaccpetable hardware issues and poor support handlings before Microsoft execs may think...

If the Blu-Ray announcement is correct as well as Microsoft isn't lying to its customers maybe they are planning a new  (reliable) 360 compatible console and release that as a new product line?

I hope future 360 games will come on Blu-Ray, this would widen the potential of future multi-platform PS3 games as well (not only in terms of storage, but in terms of sustained predictable streaming potential as well).

At least consumers wouldn't have to deal with disc scratching for their future games anymore. Maybe two versions can co-exist, some games and Blu-Ray movies only supported on the high end version. Many 360 owners bought multiple 360 consoles, I know someone who's Elite died after having experienced several 360 premium failures before this. He has a big 360 games library, bought a HD DVD drive and would probably upgrade to a more reliable 360 console with internal Blu-Ray drive.

It;s possible Blu-ray DVD combo drives will cost little more than a DVD only drive in a few years time.
Why not do it - In this case how-ever it's hopefull speculation and not actually happening.
Not supprising given how abismal the HD-DVD addon sold.

A new model XBox 360 built in Blu-Ray drive or a Blu-Ray drive add on that works with games would be a good move by Microsoft. Multi-platform games on both PS3 and Xbox 360 would have 50Gb storage space for developers to utilise and not have to fear storage space restrictions on the XBox 360 limited to 7GB on a DVD drive.