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Xbox 360 with Blu-ray to spark price war with Sony PS3?

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DigiTimes is feeling pretty confident about the rumors they started yesterday regarding the Xbox 360 with integrated Blu-ray. They are so confident that they're predicting a price war as Microsoft takes on Sony's PS3 at its own game. Their sources claim that the Blu-ray Disc drive will cost Microsoft between $95 and $100 -- much higher than the $18 to $20 DVD drives already found in the Xbox 360. Microsoft is of course, expected to sell its new Blu-ray rig at a loss as is customary in the console market. Sony may then be forced to lower the cost of the PS3 and/or retaliate by increasing Lite-On's cost for the Blu-ray components (like the BD-ROM pick-up heads) purchased from Sony. Whatever the result, the competition would be nothing but good news for consumers of HD media... you know, if the rumor is true.

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