According to a report from the Financial Times, citing a senior executive at Sony, Microsoft is looking to bring Blu-ray playback to the Xbox 360. Whether that would mean an external player, a la the discontinued HD-DVD add-on, or an internal player isn't yet known, but the Times article seems to lean more toward a top-tier, Elite-plus model at a higher price.
While Sony brass may have spilled the beans on a possible 360 revision, Microsoft reps were quick to place doubt on the report. Next-Gen quotes a Microsoft spokesperson as saying "There are no plans to introduce Blu-ray" today, instead reiterating the company's focus on games. Someone's not being truthful here about Blu-ray playback. And if we can't trust high level Sony executives or PR representatives, who can we trust?