Answer me this: what did the HD-DVD addon do for them?

@Twes - Absolutely nothing, but that was because they backed the wrong format. Had they backed Blu Ray from day one they would be one of many companies today that are pushing for the format instead of downplaying it every chance they have.

Point 2 is absolute BS because if that was their mentality there would never have been an HD DVD add on/netflix or anything non-gaming related.

Well, the HD-DVD addon allowed Microsoft to counter what they thought was a pretty strong selling point for the PS3 ...

At the current time, the lack of dominance from either the PS3 or XBox 360 probably has Microsoft looking in a different direction today, which makes a Blu-Ray addon not that appealing to them.

This I will agree with, but as far as I'm concerned, Back's PR is just as garbage as something you would expect from Sony.

In their eyes the HD-DVD addon was a failure, plain and simple.  Why would they want to invest in another possible failure when it's not even something they're focused on? 

This isn't as tough as yall are making it out to be.  He was asked about Microsoft and BluRay and he gave three very honest answers why it wasn't going to happen or at least wasn't currently on their list of things to do.

1. It's not something a lot of 360 owners are looking for or else more would ask for it.  As far as they see it they already have a perfectly fine video service with the movie marketplace and Netflix (and they are right because that is a very good service).
   
2. It doesn't help 360 gaming any at all.  It was pretty straightforward and honest that if they allowed 360 BluRay games, then the 28 million shipped 360's out there would not be able to play those games.  That's a very bad thing.
   
3. It would raise the price of the console for something that most 360 owners do not want, potentially replace the video service that's already very good and already has a lot work put into it, and something that would not help them further their gaming machine.  So why would they want to put BluRay in the 360?
   

So yes, very straightforward no spin answer.

I read his first reason and Id assume that has t do with people who bought the HD-DVD add on only to get burned.

Fool me once shame on you. Fool me twice and I'm an idiot... or something like that.

I imagine it's partly that and also that they pretty regularly ask people what they want in the 360.

Max King - It's 'Fool me once, shame on you, fool me twice, shame on me'.

From Microsoft, and fans' standpoints, he's 100% right. Blu-Ray won't help their gaming (sorry perpide, but Robbie is right. It won't help Microsoft when they can't use BR for games), won't make it a better system. Blu-Ray, or any next-gen disc format needs to be intergrated into the device, or any and all will wind up as successful as the HD-DVD addon, 32X or Sega CD.

I think if you go back to when the HD DVD came out for the 360, the same three reasons could have been thrown at that, no one asked for it, expensive, most people wont buy it so not profitable for gaming.

Really it is a case of 'add-on' of any description being pointless, if we look back at similar types of add-ons for previous systems, the general trend is public indifference.

So i think he is correct, probably a few more than 3 reasons if we are really honest. What i am really interested in is whether the next gen xbox will have it or whether they go for something completely new.

@perpide - he specifically states that it doesn't benefit the xbox's core function. so, yeah, they had an add-on in the past but it still doesn't make what he said incorrect.