No Blu-ray For Xbox 360?

After Toshiba pulled the plug on HD DVD the rumor was that Microsoft was going to offer support for the Blu-ray devices both in Windows and on the Xbox 360.  Now Microsoft is claiming that they're not presently working on such a device for the Xbox 360:

"Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience," (Xbox group product manage Aaron) Greenberg told Reuters in an interview.

One possible reason why Microsoft isn't developing a Blu-ray player just yet is that they might be planning on pushing their Xbox Live video rental service harder.  Why back a competitor's technology when you can vertically integrate?
Tags:  Xbox, Xbox 360, Blu-ray, box, 360, blu, ray