Peripheral? Scratch that. The article doesn't confirm that it will be an add-on. Which means it's a possibility that M$ is moving towards a built-in BD-ROM drive. I hope that's not the case. I hope I can just buy an add-on. Or else I'll probly get a PS3. Guess we'll see...

I would think it would be a separate drive like they did with the HDPlayer. I figured that was microsoft's reason the way they did the separate player because they knew HD or Blueray was going to dominate and they wanted to get in some quick profits with HD.

You get more hardware for the money with PS3 now. That difference is MSRP is going to get even greater if MS releases a BluRay version of the 360.

I don't believe this. All hail Chris Lanier:

http://msmvps.com/blogs/chrisl/archive/2008/05/04/1613244.aspx

Latest rumor, ASUS subsidiary Pegatron has reportedly won the contract to “assemble the Xbox 360 with Blu-ray Disc ROM drive” according to Economic Daily News (Chinese).

I’ve covered the Xbox 360 Blu-ray rumors since they started, and I think I’ve made my case pretty clear. In my opinion it doesn’t make sense for Microsoft to include Blu-ray in the Xbox 360. It doesn’t make sense for Microsoft to even offer an external Blu-ray drive. If doesn’t even really make sense to do a single new SKU for Blu-ray, but lets look at it from another angle. Forget the technical aspect, forget what Microsoft wants or doesn’t want, let’s look at it from the consumer aspect.

External Blu-ray Scenarios

(I’m blindly assuming that Microsoft would sell an external Blu-ray Disc drive for $150, which would most likely be a loss for Microsoft. Remember that HD DVD originally shipped for $200 with Toshiba taking the huge loss. Other HD DVD drives where shipping for $300+ at the time. This only takes into account drive prices, loss on the software/licensing side not included.)

* Playstation 3 40GB (include Blu-ray) = $400
* Playstation 3 80GB (includes Blu-ray) = $500
* Xbox 360 Arcade ($280) + External Blu-ray Disc Drive ($150) = $430
* Xbox 360 Premium 20GB ($350) + External Blu-ray Disc Drive ($150) = $500
* Xbox 360 Elite 120GB ($450) + External Blu-ray Disc Drive ($150) = $600

Once again, the Xbox 360 Arcade is targeted at casual gamers, so I’m going to leave it out of the picture (but note the total price is still more than a PS3). I’d also remind everyone that specs are the only thing that matters. Everyone keeps telling me Microsoft needs Blu-ray to compete with the PS3. Unless you’re matching the basic specs, you’re not competing.

This means you can get a PS3 with double the hard drive space for $100 cheaper. Point goes to the PS3 if you are talking about competing. You don’t gain anything by offering an external Blu-ray Disc drive, the PS3 is still a better deal all around.

For current Xbox 360 owners the concept of an external Blu-ray Disc drive is the most appealing. Even at $200 it would be the cheapest Blu-ray Disc Player on the market, but why exactly does Microsoft care about this situation? It doesn’t boost Xbox 360 sales, and they are most likely losing money on the drive to start with. I understand why current owners would be interested, but it just doesn’t benefit Microsoft at all.

Internal Blu-ray Scenarios

Considering the Xbox 360 Arcade is again targeted to casual gamers, the chance of Microsoft integrating Blu-ray into it doesn’t exist. UNO and Pac-Man players generally are not Blu-ray owners.

Microsoft already needs to upgrade the Premium to a larger hard drive to directly compete with the PS3 at its 40GB entry price. Put a Blu-ray Disc drive in the current 20GB, sell it at a loss for $350 and the PS3 is still a better deal on paper. Point goes to the PS3.

Upgrade the Xbox 360 to at least 40GB and add internal Blu-ray (selling at a loss again) and the Xbox 360 would finally be able to compete directly. So far this is the only feasible option from a consumer perspective, of course that replies on Microsoft taking the hit for Blu-ray and upgrading the hard drive at the same time. If Microsoft ups the price (figuring 40GB and Blu-ray) your price would be equal to the 40GB PS3 (and I’ve covered reasons why the PS3 is a better Blu-ray Disc Player to start with).

The Xbox 360 Elite is supposed to be Elite, right? Is Microsoft going to alienate all Xbox 360 Elite owners by doing another SKU that is truly the Elite one? The one advantage the Elite has is the large hard drive, but once you cross the $500 price tag your product isn’t going to push any units. This would mean Microsoft takes the hit for the Blu-ray Disc drive and doesn’t pass any on the consumer. Not likely.

Exclusive Titles

None of the above takes into account people buying either the PS3 or Xbox 360 for exclusive titles. These people are going to get whichever system has their exclusive titles, matched features might sway them one way, but if Halo is your game then you are buying the Xbox 360 no matter what. If Grand Turismo is your game, your buying the PS3 no matter what.

Previous HD DVD Owners

A larger percent of the 300,000 people who purchase the external HD DVD drive still have a bad taste in their mouth. This might be eased by Blu-ray officially being the winner, but Xbox 360 Premium ($350) + Xbox HD DVD ($200) + External Xbox Blu-ray ($150) + Accessories = $700+ for a game console that is three years old (earliest release of such a drive would be years end, console turnover time has been around four years).

Growing User Awareness Against Xbox 360 with Blu-ray

The best part of all of these rumors is growing user awareness that the Xbox 360 with Blu-ray doesn’t make sense. Check out the comments on Engadget and Engadget HD, the vast majority of the comments (especially the ones ranked high) are going against buying, needing, or wanting an Xbox 360 with Blu-ray. Once again, I just don’t see how this would make any sense.

Console Redesigns

One of the newest idea that has been throw out is Microsoft including Blu-ray in the Xbox 360 when they really start the console redesign process to cut cuts in manufacturing. I can see this happening if they are planning Blu-ray for the Xbox 720, but if they are not then I don't see why they would waste the time. As Blu-ray drives fall in price, they will become the standard. I don't think we are there just yet, but in another year or so the prices will be around of that OEM DVD drives today. If Microsoft is doing Blu-ray for the Xbox 360, you might as well throw it into the redeisgned Xbox 360 as well. At current prices this story is much different.

I would think (and hope) so too. From our point of view (being current 360 owners), it only makes sense. But from a marketing standpoint, if you're targeting non-owners, then it would make more sense to have it built-in. I guess we'll see!

This is all pretty crazy...I'll definitely be keeping an eye on this news.

Neowin says that Microsoft has denied this rumor:

"Despite reports that a Blu-ray Xbox 360 is in the works from an ASUS subsidiary, Microsoft has once again moved to deny the rumors.

Microsoft had no comment when the reports hit last week, but now an official has sent an email to the popular gaming website GamePro denying the reports.

“As we have stated, we have no plans to introduce a Blu-ray drive for Xbox 360. Games are what drive consumers to purchase game consoles, and we remain focused on providing the largest library of blockbuster games available.”

It seems that more and more reports will hit the Internet that a Blu-ray Xbox 360 is coming and Microsoft will continue to deny them. Will a Blu-ray Xbox 360 be coming anytime soon, or will Microsoft stick by its guns and stay with HD digital downloads?"

I though MS "does not comment on rumors and speculation." Ever. Either way, it's nice of them to clear it up.

If they do have a developed blu-ray then why would they announce it now and probably lead to a decrease in xbox 360 sales? If i was planning to buy a 360 and knew a blu-ray player would be coming out a few months later...i would wait.

Why not just buy a ps3? Blu-ray seems like a lost cause for the 360 because of the price point that rapture discussed. Besides you can download HD movies off live for a good price...and are you really going to watch a $35 blu-ray movie 5-6 times within 6 months or a year?

I agree. Integrated Blu-Ray makes sense for Xbox 720, but not Xbox 360.

XBOX 720?

You must mean the XBOX 1080. That's my prediction for the name of the next XBOX console. 1080 is a multiple of 360 it will be the 3rd gen XBOX (3 x 360 = 1080). Also, 1080 denotes the HD resolution and the next XBOX will be an all out HD device.

I agree with your assessment, rap. I use Xbox 720 because most blogs that I read are referring to the next gen Xbox 360 as Xbox 720 because there's nothing else to call it.

In sum, I think you're probably right, but I use that term for consistency.

Xbox stole the "360" designation from snowboarding (or skateboarding if you want to get technical about which was first) and rotations of a spin off of a jump, in increments of 180 degrees. So, for all I know, the next Xbox will be called "Xbox Switch Backside 540 w/ Mute Grab"....

The question is, will Microsoft stomp it?

Xbox actually stole the "360" designation from a geometric shape common known as a "circle". You can travel multiple revolutions around this "circle" to increase the amount of degrees you create. It's hard to understand, I know, but it's really easy once you get it.

Thanks for steering the topic off course. And for the geometry lesson.

LOL @ Disavowed and Mintz...

I'd like Blu-Ray in my/a 360 or an external drive, but right now it just doesn't make sense for MS to do it. Heck, I'd rather get the PS3 and be done with it.

If I had the money to buy a hi-def video player, I'd buy a PS3. Since the most expensive PS3 is cheaper than the cheapest Blu-Ray Player (I think), I might as well buy the expensive version.

After I bought a few Blu-Ray movies, and since I'd own a PS3, I might as well check out the PlayStation Store and buy LittleBigPlanet or another game. Since I bought a couple fun little games, I might as well buy Resistance: Fall of Man and MGS4.

See how it just sucks you in?

Mintz, I believe that recently some Blu-Ray players have come below the $400 price point. The PS3 is still the best Blu-Ray player for the $, no doubt, but just a couple months ago $400 Blu-Ray players were the cheapest players on the shelf, making the decision a no-brainer.

I wonder just how much longer the PS3 will remain the best Blu-Ray player on the market. Soon, the prices for standalone players will have to be cheaper than a console+standalone player.

Well the quality of the player in the ps3 is equal to the high end priced ones, at least it used to be on release.

Sky is right. There are/used to be a couple Blu-Ray titles that only worked 100% correctly on PS3. I think one of the Pirates of the Caribbean movies is an example of that.