http://www.1up.com/do/newsStory?cId=3176595
More than a year after Sony declared victory in the format war, it appears that Microsoft is officially embracing Blu-ray, to an extent. In an interview with Gizmodo, Microsoft CEO Steve Ballmer confirmed that the Xbox 360 will eventually be received a Blu-ray add-on drive. The confirmation came when Ballmer was asked whether the Xbox 360 would be getting a Blu-ray drive anytime soon. He replied, \"Well I don't know if we need to put Blu-ray in there - you'll be able to get Blu-ray drives as accessories.\"
As Gizmodo points out, it's possible that Microsoft is merely pointing out that any Xbox 360 Blu-ray drive would have to be external, and that it's not an actual confirmation. For its part, Xbox 360 representatives are keeping their cards pretty close to their chest, saying that they're not ready to comment on future plans.
Microsoft has repeatedly denied plans for a Blu-ray player since the format war came to an end last year. Director of product management Aaron Greenberg issued the most recent denial, saying that Microsoft believes that the future is digital, and that they won't \"force people to pay for things they don't want.\"
With no official details, we can only assume that Microsoft is waiting until CES to make an official announcement.