It's been bandied about before, but now we have real word from Microsoft that they are indeed going to be supporting the defacto winner of the format war. With Sony saying that they were "in talks" with Microsoft, and a clam-like strategy being adopted by Microsoft, no one was quite sure just how spited they were towards Blu-ray. This is jus the confirmation of thingswith Microsoft admitting that it is trying to figure out the best way to connect with Blu-ray, and that it is working on different ways to integrate the Blu-ray devices and technology into Microsoft products across the board, including Windows.

source: xbox360fanboy
thanks to: makifo for PMing me the news :)