Xbox 360 with Blu-Ray Rumours
That the Xbox 360 will be gaining Blu-Ray support is the rumour that just won't die. But how likely is it?
I'd say about 50/50. The hardware part is easy - and the that's the part that the rumours always focus on:
The website ... states that MS has contracted Korean firm Pegatron Technology to build a Blu-ray Xbox 360. You can't get more direct than that. They say it like it's a FACT and 100% true.
But I doubt Pegatron is doing the firmware required to play Blu-Ray discs, a significant portion of the work. Probably an order of magnitude harder than doing the hardware portion. Blu-Ray is a complex specification.
But Microsoft is an adept implementer, and the death of HD DVD has shown the way. Future versions of Windows are going to need to play Blu-Ray, the next-gen Xbox is going to need Blu-Ray, Apple is rumoured to be building Blu-Ray drives into the next-gen Mac laptops, so any investment in developing Blu-Ray software is going to be money well spent.
So in some ways it's really just a matter of time.