Update 1: Major Nelson has since corrected the original statement of a Blu-Ray drive coming to the Xbox 360 – King

It may be late, but big news was just announced in the gaming world.  According to Gizmodo, it looks like the Xbox 360 will be getting Blu-Ray capabilities.  Gizmodo conducted an interview with Microsoft CEO Steve Ballmer, and when asked about adding Blu-Ray to the Xbox 360, he had this to say:

“Well I don’t know if we need to put Blu-ray in there—you’ll be able to get Blu-ray drives as accessories.”

It appears from this quote that there isn’t a possibility that the Xbox 360 will see an internal Blu-Ray drive, but rather that it will be in the form of an external accessory.  One thing’s for certain, if this rumor comes true, Microsoft will have taken a giant step towards taking away the Playstation 3’s competitive advantage.  Now if they could only get rid of those pesky red lights.

If we find out anything more, we’ll be certain to update you right away.  Also, check out Gizmodo over the next few days for more about the interview with Ballmer.