Way back when the Next Generation Format War was being fought (sometime after The Clone Wars in a galaxy not so far away...) Microsoft decided to align itself with the HD-DVD camp. After all, Sony was the manufacturer of the rival Play Station series of game consoles, so clearly it put them rooting for the opposing team. However, Microsoft ended up backing the loser.
Fast forward to present day. Those X-Box 360 consoles with their HD-DVD add ons are in need of a Blu-ray add on. This way one could watch video goodness in a hi def way from their video game player. Is Microsoft going to cave in and do such a thing? Apparently not.
It comes down to Microsoft not wanting to back an opposing format. While the war may be over, Microsoft won't change their hardware to appease the winner, and in turn, their minions of loyal hi def seeking fans. While their games stick with the HD-DVD format, there will be no viewing of Blu-ray films on the X-Box 360. It's a games platform after all. Tell that to PS3 fans.