An Xbox 360 with a Blu-ray player would be very cool, especially given that Microsoft backed the wrong horse (HD DVD) for so long. But is Microsoft really dumb enough to try and announce it an hour before the WWDC event tomorrow?

That’s the rumor that CrunchGear is hearing. 1 hour before one of the largest events in Apple’s history, Microsoft will announce an Xbox 360 with a Blu-ray drive that will ship before Christmas and be cheaper than the current Xbox 360 Elite.

If true, why on Earth would Microsoft time it that way? They would clearly have to be thinking that such an announcement would dampen the buzz of the 3G iPhone – but it wouldn’t, it would just get completely buried under it.

Save it for another day Microsoft. Don’t bring a knife to a gun fight.