IMO The non HDD SKU XBox 360 model was a mistake. Blu-Ray XBox 360 would be interesting.

Yeah - You're right probably. They wouldn't have had those nasty shortages with just two SKUs. Also the games would have been better and they could have done installs onto a 40-60gb hdd and they could have put all the highly compressed textures off the DVD and onto the HDD and almost double the effective space of the Disk to about 12gb - 1 gb install leaves 6gb on the disk and uses 6gb on the console. Edit: they could also have done multi disk open worlds like GTAIV - Whatever edition with an install disk and a play disk so no interuptions.

I wont believe a Blu Ray 360 is coming until the day I see it on the shelf.

It is one of the few rumors that Microsoft has actively denied

"faster graphics" I call shenanigans.

Cooler chip fair enough.

Interesting , thanks Rock_on_2008!!!

The only reason microsoft will even do this is do grab a piece of movie market that they lost in Q1 with HD-DVD.
Nothing to do with games.

Oh and remember, the 3 year warranty only covers RRODs, not drive failures or any other various faults.

That is really good news.

YOu guys sure that this is true?

I love all the crazy talk about MS adding a Blu-Ray drive. The blu-ray drive would have to be external. The reason being is that 18 million 360's have sold and if MS adds Blu-Ray support they will piss off the 18 million that already own 360's. Unless MS offers a free upgrade program it would be a disaster for MS. It would make it so the fan base not trust buying a MS product fearing they might have to buy one in the near future. Remember, the Sega disaster?

As I said earlier a blu-ray player will come external. MS will not put it in the 360 it's bad PR disaster waiting to happen if they do.