If the drive would be internal, the price of the 360 would go up. I see no point in making a new SKU either, unless there is a huge demand for it. Most people would rather buy an external Blu-Ray drive that would work on both, Xbox 360 and their PC rather than having the drive built-in a Xbox 360. Part of the rumor was started by Sony saying that they hope that Xbox 360 would have Blu-Ray built-in and part, because some features that are mandatory for Blu-Ray players aren't available on the current Xbox 360 systems (linear PCM for example), though I'm sure they can work around that.
QUOTE(NoFace @ Mar 9 2008, 05:58 AM)

I keep seeing this as MS constantly getting caught with their pants down. They deny things until it is almost certain that they are lying.
If you follow the news every three to six months and read maybe two or three news articles, then sure
