http://www.techtree.com/India/News/Microsoft_Confirms_Going_with_Bluray/551-87585-581.html
"Just two days back, we reported that Sony is busy wooing Microsoft to add Blu-ray support to its Xbox 360 gaming console.
The effort's paid off (or so it seems) -- with Microsoft now confirming that it's trying to figure out the best way to connect with Blu-ray. The company also seems to be working on ways to include device driver support for Blu-ray drives in its Windows operating system.
Incidentally at the Mix '08 conference in Las Vegas, Microsoft CEO Steve Ballmer said, "We have already been working on, for example, in Windows, device driver support for Blu-ray drives and the like, and I think the world moves on."
"Toshiba has moved on. We have moved on, and we will support Blu-ray in ways that make sense," Ballmer had said rather pointedly.
Before Toshiba went public with withdrawing its HD DVD format, Microsoft had HD DVD players as add-on along with their Xbox 360 gaming consoles.
But with HD DVD all but dead and Blu-ray the winner, Microsoft had no option but to stop manufacturing HD DVD drives for its Xbox 360 console.
What wasn't clear though was whether Microsoft would finally go with the Blu-ray format. The latest admission from the company clears that confusion."
Could the 360 be next?
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