While Microsft's saying no Blu-Ray right now, that doesn't mean Sony's not trying to get them to offer up the drive. According to a senior Sony exec, they are
indeed talking about trying to offer a Blu-Ray drive on the 360. Who knows how extensive the talks went and what the current state is, but seeing as Blu-Ray is the HD standard, it would be safe for Microsoft to offer it built in to a 360 now as well as an add-on drive. Personally, I wouldn't mind seeing a BR drive in a 360 as long as it's quiet.