Originally Posted by Agent
For their next console, not the 360

Should have made that a bit clearer.
With respect, I'm not so sure. I'd hazard a guess that there'll be an "add-on" drive, similar to the 360's HD-DVD drive.
It would almost certainly be external, like the current HD-DVD option. That wouldn't really attract me - I'd rather have a BR drive in my PC, given time. I like the crispness/sharpness (if they're words) of my LCD monitor compared to even LCD-TVs, and (edit) you can set things how you like with computer players, and there are so many to choose from: MPc (with appropriate codecs), CL PD7.3, WMP11, VMC/MCE, VLC-mp, etc.
If I were in the market for a BR player, and saw this add-on player at a reasonable price (around £100),
and I already had a 360 (which I don't, at least not yet,) it would be worth considering, I suppose.
I do agree with you that their "next-gen" product (XB-720? lol) will have to support a "next-gen" format (probably blu-ray, but could still be UVD in theory), with backwards compatibility, or it will not sell.