Q: In January, Warner Bros. announced that it was going to support Blu-ray, the high-definition DVD format. Since then, the rival HD DVD format has gone away. Microsoft supported HD DVD with an Xbox HD DVD attachment. What is your plan there?
A: Our plan continues to focus on high-definition experiences. Xbox 360 has a great ability to deliver those through the Xbox Live (online download) service. It's a great way to get the high-definition concept because it's right there. There's no additional media. There is nothing you need to purchase.
If you look at the Blu-ray player market, you haven't seen the acceleration everybody expected (since the demise of HD DVD). It's not as much about whether all the content is in a Blu-ray format or a HD DVD format. You have to look at how fundamentally compelling the difference is between a progressive scan DVD player and the picture that it can produce and what you get on a high-definition player. The reality is there is some difference, but most people look at it and say, "I am not going to pay extra for that."
Q: So no plans for Blu-ray in the next generation Xbox?
A: No. There is nothing to even talk about right now with regard to the next generation. That is so far out that there isn't anything to talk about.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/06/08/BUPF11383J.DTL
I think that should put any rumours concerning Microsoft adopting blu-ray to rest.
