Apparently there is a rumour going round that now the death of HD DVD is official, Microsoft is going to release a new 360 with a built in Blu Ray drive?
Rumors aren't necessarily fact. After investing in the HD-DVD Player, they would be losing so much more money rather than if they kept it. They first would have to develop it, then design it to fit into the Xbox. If they did something like that, they would be obligated to give a little something to the new purchasers of the original Xbox 360.