Following the horrible death of the HD DVD high definition format, many had predicted (me included) that Microsoft would pretty soon be offering a Blu-ray drive for the Xbox 360. Seems like Xbox 360 owners waiting for a Blu-ray player are out of luck.
The news was broken by Aaron Greenberg, group product manager for Xbox 360:
"Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience."
So what does this mean for Xbox 360 owners? It means that Microsoft has decided not to pursue a physical player and instead concentrate resources on Xbox Live online service which allow Xbox owners rent movies. Rather than be seen to be abandoning HD DVD and leaping onto the Blu-ray wagon, Microsoft wants to go it alone and break free from physical media. Perhaps Microsoft has lost faith in physical high-definition distribution and feels that a digital distribution method is better (for the company). From an anti-piracy standpoint a digital distribution system at least allows Microsoft to engage in a war with the pirates (as futile as that might be in the long run).
Maybe Microsoft hopes that Xbox Live could be the road to profit for the Xbox console.