Microsoft Rumored to Release Blu-ray Xbox 360 "as Early as May 2008"

With the HD DVD ship sinking faster than the Titanic, the rats are quickly abandoning the ship: according to rumors, Microsoft may be releasing a Blu-ray-based Xbox 360 soon. We don't know if the rumor is real, although it seems reasonable to expect it. The only real question is when. Their Microsoft insiders are saying May. We are saying maybe. [Smarthouse]