Did a few searches and couldn't find anyone else had posted it but:
http://news.teamxbox.com/xbox/15886/Sony-and-Microsoft-Discussing-Bluray-Drive-for-Xbox-360/
Nothing concrete but it looks good.
http://news.teamxbox.com/xbox/15886/Sony-and-Microsoft-Discussing-Bluray-Drive-for-Xbox-360/
Stan Glasgow, president and chief operating officer of Sony Electronics, has revealed that the Japanese electronics maker is in talks with Microsoft about offering a Blu-ray Disc drive for the Xbox 360. The Financial Times reports:
But after Sony’s victory last month in the high-definition DVD format war, Stan Glasgow, Sony Electronics US president, said the two sides were now talking about Microsoft adopting Blu-ray.
A Blu-ray drive in a 360 would make Microsoft more competitive with the PS3, but it would also mean extra revenues for Sony’s electronics division. It would also add further cost to the 360, meaning a premium edition of the console could be necessary.
Update
A Microsoft spokesperson provided the following comment in regards to this article:
"We have made no such announcement. Games are what are driving consumers to purchase game consoles and we remain focused on providing the largest library of blockbuster games available."
Nothing concrete but it looks good.