LAS VEGAS (Reuters) - Microsoft Corp's (MSFT.O: Quote, Profile, Research) Xbox video gaming unit still fully backs Toshiba Corp's (6502.T: Quote, Profile, Research) HD-DVD high-definition DVD format but could consider supporting Sony Corp's (6758.T: Quote, Profile, Research) rival Blu-ray technology should consumers want it, an executive said on Tuesday.

"It should be consumer choice; and if that's the way they vote, that's something we'll have to consider," Albert Penello, group marketing manager for Xbox hardware said when asked whether Microsoft would support a Blu-ray DVD accessory in the event that HD-DVD failed.

Microsoft does not believe the surprise decision last week by Time Warner Inc (TWX.N: Quote, Profile, Research) unit Warner Bros, the top seller of home movies, to abandon HD-DVD format in favor of Blu-ray should affect sales of its Xbox 360 video game console, Penello said.

"I fundamentally don't think ... this has a significant impact on Xbox 360 versus (Sony's) PlayStation 3," Penello told Reuters in an interview at the Consumer Electronics Show in Las Vegas.

"With the PlayStation 2, DVD was a big part in the beginning, but over time, people were not buying it as a DVD player after first year or two," Penello said.

The Xbox 360 supports a plug-in HD-DVD accessory that is bought separately, while Sony, hoping to give its next-generation video format a leg up, built a Blu-ray player into its PlayStation 3 machine.

"You can't say it's not a bummer, not a setback, but I've seen this battle declared over so many times," Penello said of Warner's decision.

"I want consumers to have a voice in this and I think there are a lot of consumers who bought HD-DVD who are going to have a say in how this shakes out."

Warner Bros is the movie division of media conglomerate Time Warner Inc (TWX.N: Quote, Profile, Research).

(Reporting by Scott Hillis, editing by Gerald E. McCormick, Richard Chang)

http://www.reuters.com/article/technologyNews/idUSN0851332620080108

That's kind of low for MS. 

If it does not affect sales, then why is it a setback?

Sounds like a bunch of double speak to me.

Nintendo better look out, next gen they might have to contend against the Sonysoft Playstation720!

Does seem kind of funny though.

God damn Sony shoving expensive Blu-Ray down America's throat. Nobody wants it. Gamers don't want it cause it makes the system too expensive. Regular consumers don't want it, HD-DVD stand alone players outsell Blu-Ray stand alone players 4 to 1. This is so lame, I hate Sony.

1. America? There are far more places in the world than America

2. Who are you to speak for what gamers and people in general want?

3. HD DVD hardly outsells standalones anymore, get some new numbers.

You picked HD DVD and it bit you in the ass. Deal with it and stop crying like a baby.

 But I thought people only bought a PS3 because it was the cheapest Blu Ray player on the market.

Wow microsoft doesn't really wait putting the last koffin nail into hd DVD until its dead. I would never make a partnership with them.

LOL true , I woulda expected MS to wait until HD-DVD officialy failed , Toshiba must be pissed considering they'll be hurt by the faliure of HD-DVD alot more than MS will.

A Microsoft exec said months ago (when the war was far from over) that a Blu-ray add-on was a definite possibility in the future.

They have no financial stake in either format; I don't understand why so many people around here think they should take one side or the other. They have no motivation to do so other than to be a thorn in Sony's side.