Blu-Ray on Xbox? No way

Shane Kim, vice president of strategy and business development for Microsoft's Interactive Entertainment business, tells me that the company has "no interest" in adding Blu-Ray functionality to its console, opting instead to focus on digital distribution.

"I can categorically say that we're not working on a Blu-Ray player for Xbox 360," says Kim. "To my knowledge, we don't have any intent to do that."

Microsoft (nasdaq: MSFT - news - people ) made a losing bet in the high-definition DVD wars, publicly endorsing HD-DVD and marketing a pricey peripheral that would play the format on the 360. The gaming world has been rife with speculation that Microsoft would eventually create a similar device that would allow owners to watch Blu-Ray films on their Xbox 360s. 

Click here to read Chris Morris' full story via Forbes.com.