APC are reporting that Microsoft will not include Blu-Ray playback capabilities in Windows 7. Adding Blu-Ray support to Windows would increase the costs of the operating system by about $30. The real question is if missing Blu-Ray support is really a kill criteria for an operating system. As of now it surely isn’t with DVD sales being stronger than ever and Blu-Ray sales still lagging behind by a huge margin. The amount of users who would use Windows 7 to play Blu-Ray movies can surely be neglected at this point as most hardware Blu-Ray players for personal computers are expensive and not 100% compatible with all Blu-Ray features.
Users who want Blu-Ray playback on their computer systems can purchase a third party software which will not cost that much more than the projected $30 that universal Blu-Ray support would cost. Everyone else will be happy that they do not have to pay for a feature that they would never use.
The majority of Windows XP users learned to live without DVD playback support for a long time and they did not have a problem finding third party software to fill the gap. If the demand is there free third party solutions will appear that can be used to play Blu-Ray movies on Windows 7.