The timing of this is weird.

What do they have to gain by supporting BluRay's early in its life cycle? And how are they going to compete against the inevitable slew of cheaper BluRay players on the horizon?

Not that I don't believe my buddy Beefy, but I can't figure out what's MS has got to gain by adding the BluRay add-on device? Hardware profits?
Maybe. I doubt it'd be enough to satisfy MS internal rate of return though. Unless it's solely to take away the perceived advantage people might think PS3 has with BluRay capability?

It'd better not be a crippled BluRay player like the HD-DVD add-ons were - add hi-rez capability dammit.

I think creating an optional model with integrated drive would make more sense than adding another "add-on" accessory at this point. If it was $200 even, I'd still be more tempted to find the extra cash to buy a PS3, especially if I was a gamer.

We'll see.