With the HD DVD ship sinking faster than the Titanic, the rats are quickly abandoning the ship: according to rumours, Microsoft may be releasing a Blu-ray-based Xbox 360 soon. We don't know if the rumour is real, although it seems reasonable to expect it. The only real question is when. Their Microsoft insiders are saying May. We are saying maybe.
AU: And I am saying total BS. I'm sure the guys at Microsoft have discussed it, and I wouldn't be surprised to find out that they had a working prototype with Blu-ray in their deepest, darkest laboratory. But MS was one of the biggest supporters of HD DVD, and they aren't about to put their tail between their legs and come out in support of Blu-ray so soon. No way.