From gizmodo.com:
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Full Story: gizmodo.com
In the first segment of our exclusive Steve Ballmer interview series, the Microsoft CEO and I talk about Natal, the blurring of console generations, and the surprising assertion that "you'll be able to get" Blu-ray add-on drives for Xbox 360.
When I asked Ballmer about adding Blu-ray to the Xbox, he said:
"Well I don't know if we need to put Blu-ray in there--you'll be able to get Blu-ray drives as accessories."
Though he says it with certitude, the timing of any kind of Blu-ray accessory is unclear. Could he have mispoken? Certainly. However, when I asked Xbox spokespeople about Ballmer's revelation, they responded:
"Our immediate solution for Blu-ray-quality video on an Xbox 360 is coming this fall with Zune Video and 1080p instant-on HD streaming. As far as our future plans are concerned, we're not ready to comment."