Microsoft Already Prepping Blu-ray Move: Xbox Blu in the Works?

Once one of the major holdouts supporting the beleaguered HD DVD platform, Microsoft appears to be planning already to make the move to Blu-ray as the high-definition format of choice for its Xbox 360 console. Rumors today say that Microsoft could have a Blu-ray 360 out by May, allowing it to go "head to head" with the PS3 and picking up all the Blu-ray mojo that's currently going around.

Microsoft's HD DVD player, an add-on to the Xbox 360, has long been one of the most popular HD DVD products on the market, letting any Xbox owner upgrade his console for high-definition output, and for less than $200. But now Microsoft's connection to the HD world is looking mighty tenuous.

Good for MSFT: Sources say that Microsoft has already built a Blu-ray version of its HD DVD player and could hit store shelves with it by May of this year. Even more tantalizing: The possibility of a 360 with built-in Blu-ray is also apparently on the docket. 

On the record, Microsoft is mum on its HD plans but did say in a statement that "We will wait until we hear from Toshiba before announcing any specific plans around the Xbox 360 HD DVD player." According to most rumors, that announcement from Toshiba could come as early as this week.

LINK: Blu-ray Xbox 360 Planned By Microsoft