Allow me to refer to wikipedia:Originally Posted by Brenus
Of course, I dont have access to the survey the author references.Over the last century, the consensus seems to have changed, and the subjective nature of many of the arguments used in the 19th century has been recognized. Judging from the 2003 survey of the historiography, it seems that the majority of modern scholars consider that Josephus really did write something here about Jesus, but that the text that has reached us is corrupt to a perhaps quite substantial extent. In the words of the Catholic Encyclopedia entry for Flavius Josephus, "The passage seems to suffer from repeated interpolations." There has been no consensus on which portions are corrupt, or to what degree.
Take from it what you will, but I find it much more likely that a reference to Jesus was embelished in later transcriptions rather than wholly fabricated and arbitrarily inserted.
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