Xbox 360
There have been a great deal of rumors around the Xbox 720. With it, probably, being announced at E3 we do't have too long to wait. Of these many rumors one that you will frequently see is that the Xbox will have a Blu-Ray player. This is why...
When the PS3 was released in 2006 it was packed to the rafters with the latest technology. It cost Sony more to produce the PlayStation than they were selling it for. The key reason for this was the addition of the Sony owned Blu-Ray player. They made this loss of money back in Blu-Ray sales and the ability to make the money on selling the Blu-Ray disks to game companies.
This is why the Xbox could never have a Blu-Ray player. The royalties that Microsoft would have to pay would be huge. If they did install a Blu-Ray player they would be giving money to Sony which would be good for the PlayStation as they would have more money to invest and keep the online free.
