No Blu-ray For Xbox 360?

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?
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Microsoft has already probed the market for an add-on player with their HD-DVD player. If that wasn't terribly successful for them, then there is no reason for them to offer a Blu-Ray player that has nothing to do with actual game play. I'm sure they aren't terribly overjoyed with the prospect of creating more business for their primary rival either. Regardless of whether the 360 gets Blu-Ray capabilities their next gen system will have to be based off of Blu-Ray.

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