The newest batch of rumours about Microsoft's long-rumoured Xbox update are bordering on the unbelievable. Sources claim Microsoft may include a protection system that stops the console playing second-hand titles, plus those games will arrive on -- gasp! -- Blu-ray discs.

Both moves would be rather odd. The locking of used games would absolutely ruin the game-selling parts of the high street, which have grown to depend on the rapid turnover of games and the keen trade in second-hand titles. But is that a price worth paying to keep the big-money game developers and publishers, who loathe today's trade-in culture, onside for another console generation?

The other part of the rumour, as reported by Kotaku, claims Microsoft will include a Blu-ray drive as its next home machine's storage medium. This is also pretty bonkers, not just because of the HD DVD debacle, but also due to Microsoft clearly saying many, many times that it believes digital distribution is the future of selling games to men.

Perhaps Microsoft realises the internet still isn't fast or omnipresent enough to support a few million people downloading Call of Duty at midnight on launch day? Especially if the future developers have up to 50GB of Blu-ray space to play with. [Kotaku]