Hoping to disrupt big Steve Jobs Apple keynote tomorrow, Microsoft seems to have an ace up it’s sleeve.

According to an insider tip over at Crunchgear, Microsoft is said to upstage Apple on Monday at 9am PDT (12pm for us on the east coast). The press release is rumored to be Microsoft’s official announcement of the upcoming inclusion of blu-ray for the Xbox 360 before the Christmas season. The pricing is said to be “under the current Elite.”

With the demise of HD-dvd this was bound to happen, it was only a matter of time.

*****UPDATE*****
Sorry to get your hopes up guys, this one was a fluke. The 360 will not be getting a blu-ray update. Kinda lame if you ask me.