X-bit Labs is not only reporting that Microsoft is still planning on releasing an external Blu-ray drive, but also that the company already has the device ready to go.

According to the article, Toshiba (yes, you read that correctly) and Samsung have been asked to come up with the external Blu-ray solution for the Xbox 360. Rumors are also floating around claiming a $100-to-$150 price point.

With Blu-ray playback remaining as one of the few advantages the PlayStation 3 has over the Xbox 360, one would imagine Microsoft would want to release this immediately to level the Blu-ray bragging rights issue.

If this information is accurate, we're left wondering how Microsoft will play this. Do they try and get this out in time for the holidays? Or do they wait to debut it at a show (like CES) where we're likely to see standalone Blu-ray players fall in price anyway?

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This is intersting stuff. I look forward to seeing how this all unfolds.

I don't think Microsoft will put it out this generation. Most likely they'll have a Blu-Ray disc player internally on the next Xbox so they can keep up with storage requirements.

Still, it wouldn't surprise me a bit if they were to release one. It would make the competition even rougher for Sony (assuming it was a good price and not a POS)

nah, I think they will. If they put out the drive and the combined price of it and the console is less than that of the PS3 then they'll be able to win some of the people that just want to watch movies and play the odd game or two.