Someone over at Sony let some info 'slip' about an Xbox 360 Blu Ray player. It's not known at this time how it would be implemented- stand alone or integrated into a super-360. Or even if this is true, for that matter.
MS might very well be looking Blu after the death of HD-DVD. They've said in the past that they wouldn't be against offering a Blu Ray player if HD failed. Taking that into account, this very well might have a kernel of truth to it.
If it is true, Microsoft needs to make this puppy cheap. Very cheap. Why? They need to make the possibility of a Blu 360 more enticing than a PS3 (which plays Blu Ray natively) if they want to spike sales. It may seem odd to think movie playback would drive 360 sales, but consider the fact that the majority of PS3 owners have said that Blu Ray movies played a big part in their purchase. Some have sighted it as the sole reason for owning a PS3.
Make it cheap MS-