Microsoft has said the Xbox 360 will never feature an integrated HD DVD player, instead it will make an external HD DVD drive available for their console.
And additionally there are also plans to possibly launch an external Blu-ray player for the Xbox 360:
There's no surprise that Microsoft might entertain the possibility of shipping a BD drive for the 360. After all, if it can hook up an external HD DVD drive to one the console's USB ports - as it announced last week at the Consumer Electronics Show that it will - it can likewise connect an external Blu-ray Drive.
Microsoft clearly - and very understandably - doesn't want to risk lumbering Xbox 360 with an internal drive format consumers don't want, and while it's favouring HD DVD by announcing an external drive that can read that disc format, it wants to ensure it's free to support the BD if it has to.