Rumours were circulating today (Monday, 18/02/2008) that Microsoft is set to dump HD DVD and bring out a Blu-ray Xbox 360 by as early as May 2008. The move will allow Microsoft to go head-to-head with the Sony PS3 gaming console which has been credited with being one of the main reasons that retailers have preferred Blu-ray over Toshiba's HD DVD.
David Richards reports that insiders at Microsoft in the USA has told SmartHouse that Microsoft have already configured a standalone Blu-ray player that can be connected into an Xbox 360, which could be on sale within three months.
Updates:
Various sources like Silicon Valley Insider point out that SmartHouse doesn't have the best reputation, so treat this as a rumor at best for now.
