Summary
Xbox 360 has no loyalties other than to itself, so it makes sense that it would support Blu Ray in an add-on device, much in the same way it supports HD DVD. But with a video marketplace on Xbox LIVE, it might not matter much in the end.
Analysis
Just when you thought Xbox wouldn't support Sony, they may have to. Without an integrated high definition video player, it will be easy for Microsoft to have a Blu Ray add on device available for the low price of $200 (or more), just like they did for HD DVD. Now all those people who bought the first HD add on will be pissed that they have to buy a new one if they want to watch Blu Ray movies through the Xbox.
Sounds great for Sony, right? Not so fast. I think the article missed a huge point that Xbox LIVE offers consumers the opportunity to download high def movies. If you can rent or purchase video in bits, then why buy the player? I'm surprised that anyone really cares about Blu Ray discs at all given the movement to digital download of content. So if Xbox comes out with a Blu Ray player, I'd be shocked. They'd rather push their gamers to download movies & other video content via Xbox LIVE Marketplace than to buy another piece of hardware. This way, they get the annual subscription fee plus any royalties from downloads on the service. I'm not saying there are tons of downloads today, but the fact that you can may someday help Xbox.
In the meantime, I'd rather buy a PS3 than any high definition DVD player. At least if Blu Ray goes away, I can still play some video games on an awesome piece of hardware. Until then, I'm good with my old school DVDs.
