is it possible to watch blue ray or even normal dvds on the newest edition of the...

...xbox 360? so, i got a 360 with the money i got for christmas, i traded it for the wii ( was a big upgrade imo :P) but i am just wondering if it is possible to watch blue rays and normal dvds on it? its the newest design. http://news.xbox.com/~/media/images/media%20assets/press%20kits/e3%20press%20kit/hardware/360/xbox360e_4gb_console_st2013_us_groupshot.png?h=658 &w=940

also what kind of games would you suggest for it? i love like, charictor games, like, i used to love playin the "shreck the 3rd" game on the pc ( i know i know, i'm a big kid :P) and i love gta. so yea, acceptin any suggestions :D