There was earlier speculation that Microsoft was going to offer Blu-ray support to its Xbox 360 (most likely via an external drive). This seems to have been a bit inaccurate as Microsoft has stated that it is fully committed to the HD DVD platform. Apparently, Microsoft was just touting the system s ease of expandability, implying that a Blu-ray drive could easily be added externally, but that the company actually has no such plans. Looks like you ll have to wait for the PS3 to get your Blu-ray-on-a-console fix.
MS says no to Xbox 360 Blu-ray support [The Register]