It turns out that all the speculation circling the net recently about Microsoft planning a Blu-ray drive for the Xbox 360 was, for want of a better phrase, complete fallacy. In an interview with Reuters Xbox 360 Product Manager, Aaron Greenburg, stated outright that there are no plans for a Blu-ray add-on drive saying:
"Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience."
Pretty conclusive I'm sure you'll agree.
Greenburg continued, explaining that Microsoft's intention is to continue pushing downloadable content as the best source for high definition content on the Xbox. As the only console currently offering HD film downloads Microsoft clearly feels it is in a strong position to hold-off offering a physical media solution. Whether that is the case remains to be seen.