Following HD-DVD's demise, there's been a lot of speculation that Microsoft would add a Blu-ray option to the Xbox 360. The latest rumour has a subsidiary of ASUS, Pegatron Technology, making a premium Blu-ray-equipped version of the Xbox 360 that will arrive in time for Christmas. This one follows on the heels of a report that Lite-On was going to be the one making the Blu-ray drives for Microsoft's game console.
Could Microsoft be preparing a Blu-ray Elite?
If you speak Chinese, you can translate the ASUS rumour from Economic Daily News, a publication that Gizmodo calls a "Taiwanese rag". While we may not have tremendous faith in the specifics of the rumour, Taiwanese companies aren't known to keep secrets all that well (that's a gross generalisation based on a few comments we've heard from industry insiders, but we believe it). And it does seem logical that Microsoft will add a Blu-ray option to help eliminate any perceived advantage that Sony might have with the PlayStation 3.
All that said, don't expect Microsoft to put out any games on Blu-ray any time soon. With the current Xbox 360 installed base having only a DVD drive to play with, Microsoft would be looking at movie playback, not gaming.
Of course, the rumours could be wrong and Microsoft could simply put out an external Blu-ray drive similar to its discontinued HD-DVD drive offering. Or perhaps there will be a premium Xbox 360 with Blu-ray, as well as a separate Blu-ray external drive for current owners. Sounds inevitable, right?