Last week, there was a rumor circulating that Sony was in talks with Microsoft about incorporating Blu-ray into the Xbox 360. Aaron Greenberg, group product manager for Xbox 360, has squashed these rumors, stating that the company is not in talks with Sony, nor does it plan to integrate Blu-ray into the console.
The comments by Aaron Greenberg, group product manager for Xbox 360, poured cold water on recent speculation that Microsoft could support Blu-ray after Toshiba Corp, backer of the rival HD DVD format, gave up when key movie studios and retailers abandoned the technology.

"Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience," Greenberg told Reuters in an interview.
Take not that Greenberg is only denying the rumor about Blu-ray being integrated into the Xbox 360. There is no mention here of the addon player. If you'd like to read more, the entire article can be found here.