Wow, this is exciting news. I never really considered myself a videophile, but after the cheap HD-DVD binge that I went on last month, I am hooked on hi-def. It seems that now, after months of denial, Microsoft is indeed working on a Blu-Ray enabled add-on drive (and possibly a system with the drive included). Depending on the price point, this may turn out to be very, very nice for Xbox 360 owners who haven’t made the jump to hi-def yet.