Right now, the DVD-ROM drive in an Xbox 360 costs between $18-20 for Microsoft to include. Everyone wants the Xbox to get Blu-ray, but will they want to pay the price?
The OEM costs for a Blu-ray drive for Microsoft would be around $95-100 a pop, effectively raising the price of an Xbox $80-$100 to cover it, making the console more expensive when Microsoft is trying to keep costs down to gain market share.
According to Digitimes, the only way MS is going to make this work is to sell the rumored Blu-ray Xboxen at even more of a loss and home that Blu-ray-based games can really bring in more money on the licensing end.
We’re hoping it can, we want our Blu-ray Xbox.