Right after CES, Petere Moore (the marketing guy for the X-box) let out that Microsoft could release an external Blu-Ray player for the Xbox 360 if Blu-Ray won the upcoming format war with HD DVD (the standard that Microsoft is supporting). Microsoft has since released a statement saying:
"It is important to understand the
context in which that statement was made. Microsoft firmly stands
behind the HD-DVD format as the best choice for our consumers."
Which I interpret as
"Yeah, we could probably release a Blu-Ray player for the Xbox 360 if we wanted to but we are pouring a lot of money into the HD-DVD stuff so we want you to buy that instead. If that doesn't work out we'll put out the Blu-Ray player"