Industry wants to get bigger profits from Blu Ray than from DVD which is why they won't drop price to same level. If there wouldn't be higher prices on Blu Ray industry would only release movies on DVD. Even DVD movies cost more than VHS movies when DVD's were already much cheaper to manufacture. And same happened with CD's too.

''People don't want blu-ray''-Microsoft
''We don't need blu-ray''-Microsoft
''Blu-ray is going to die out''-Microsoft

etc..etc...etc...

damndl0ser "Blu-Ray is nice, but I wouldn't say its as big of a step up from lets say vhs to dvd." I BEG TO DIFFER!  Blu-ray is a much bigger step up, vhs had 485 vertical lines x 400 horizontal (super vhs), while dvd has 852h x 480v, a bit over twice the pixels. Blu-ray is 1920 x 1080, which is 5 times the pixels of a dvd. And then, don't forget, resolution is only half of the equation. Bandwidth is important also, which the guys saying " i get 1080 streaming" seem to forget. See any compression artifacts, or color banding because lack of color depth? Not with blu-ray. By the time ms decides to make a blu-ray drive for 360, stand alone players will be < $100, so what's the point? New games wouldn't use it. And when your 360 RROD, which it will, someday..... ( BR-RROD?)   http://hometheater.about.com/cs/television/a/aavideoresa_3.htm

^I don't think that's the point, though.

DVD was a nice step up from VHS and SVHS in terms of audio/video quality but what your average consumer mostly got was not pixels.
It was the convenience of having a medium that was much more durable and did not degrade with time. It was the convenience of navigating episodes, scenes and extra content through a visual menu instead of having to deal with time counters. It was the availability of multiple audio tracks and subtitles. It was the convenience of never having to worry about rewinding.

Blu-Ray added a few niceties in this sense (PIP multi-streaming, overlay and richer interface) and of course it added greater audio/video fidelity. But for the average consumer it's still by all means a nice update to the DVD format, not something radically new.

Well, since I am at work know and sitting in my office fearing my boss may come in and catch me beeing online for fun,
I dont have the time to look for a source but as far I know there are about 150 different patents on the blu ray technology, and companies
like phillips, samsung,toshiba are involved as well. but sony owns over the most of those patents, over 100.
anyway, I know there are also ironic things, like sony ericsson cell phones use also windows mobile. and in MS commercials
you can see VAIO notebooks (instead of apple notebooks),and sony also have 9% of the shares in square-enix so they earn money also with each ffXIII copy sold for the 360.
Thats business ;)

Pointless. Blu-ray players are cheap. Hell, I got one last year on Black Friday for $100. It was a shitty Magnovox, but it works.

a stand alone is more energy efficent than the 360 anyway.

Sony has the biggest share in blu ray formation

I don't know who would buy an addon Blu-ray drive for X360, it's insane. I'd rather buy a standalone BD or PS3 if I have money and time to buy games on both consoles.

And Microsoft holds rights for a codec that Blu-Ray uses; VC-1.

Despite this, I have Blu-Ray on my laptop for my needs. I could only see this as an optional add-on. There could be no games for the X360 that are Blu-Ray for the time being. Microsoft is still shy on the matter of Blu-Ray as they have relied on third-party players for Vista/7 on PCs.