Citing digital movie downloads as the future of Xbox 360 media playback, Microsoft today ruled out the possibility of a Blu-ray add-on player for the system.

Microsoft Interactive Entertainment Europe VP Chris Lewis was the latest voice from the company to refute rumors of a Blu-ray add-on player. "We have no plans to do anything at all in terms of further or additional movie playback peripherals," Lewis told MCV.

Lewis also stated his belief that consumer choice is turning towards digital media distribution.“My own view is very clear and I know it's shared by other people in Microsoft is that the future's digital downloads now. The broadband proliferation is amazing—people’s appetite to download movies through Video Marketplace is testament to that.

"Online is the future. And we're very well placed to take advantage of that," Lewis added.

The VP's comments add further weight to a statement made by Xbox product manager Aaron Greenburg Wednesday in which he dismissed reports that Microsoft and Sony were in talks concerning Blu-ray movie functionality on the Xbox 360.

Following hardware manufacturer Toshiba's announcement that it would cease production of HD DVD players and recorders of the format, Microsoft axed its Xbox 360 HD DVD add-on peripheral, with comments from the company prompting many to speculate that a Blu-ray player add-on was in the works.

Microsoft is not in talks with Sony to bring Blu-ray movie functionality to the Xbox 360, Xbox product manager Aaron Greenberg has revealed.

"Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience," Greenberg told Reuters.

Greenberg's comment clarifies a statement made by Sony Electronics US president Stan Glasgow earlier this month, in which the executive said that the company was in talks with Microsoft concerning an adoption of the Blu-ray format.

However, Greenberg's denial of talks to bring Blu-ray movie playback functionality to the Xbox 360 does not rule out use of the format on Windows-based PCs.

The Blu-ray format, which was developed by Sony as well as several other companies, was crowned the victor of the "HD format wars" when hardware manufacturer Toshiba ceased production of HD DVD players and recorders.

Microsoft soon followed suit, axing production of the Xbox 360 HD DVD player add-on, with rumors suggesting that an Xbox 360 Blu-ray add-on player could arrive as early as May.

Sony said that it is in talks with Microsoft concerning Blu-ray movie playback functionality for the Xbox 360, according to the Financial Times.

Sony Electronics US president Stan Glasgow stated yesterday that the companies were discussing the possibility of Microsoft adopting the format. Whether or not this would take the form of a hardware revision with a built-in Blu-ray player or an external add-on peripheral similar to Microsoft's HD DVD player was not specified.

Speaking at the Mix08 Internet conference in Las Vegas, Microsoft CEO Steve Ballmer said that plans for Blu-ray were in the works—but how those plans will manifest remains to be seen.

"We've already been working on, for example, in Windows, device driver support for Blu-ray drives and the like, and I think the world moves on," Ballmer... Read more

Microsoft has confirmed to Shacknews that it has ceased production of the Xbox 360 HD DVD player add-on, and units currently available at retail will be dropped in price to $49.

Microsoft's Taipei branch announced the drop earlier today, noting that it will continue to provide technical and warranty support for HD DVD player owners.

Primary HD DVD backer Toshiba announced last week that it would cease production of HD DVD players and recorders, prompting many to sound the end of the "format wars." Microsoft has repeatedly declined to comment on rumors of a Blu-ray player add-on for its Xbox 360 console.

Electronics manufacturer Toshiba announced today that it will discontinue production of its HD DVD players and recorders, prompting many to sound the end of the format war in favor of Sony's Blu-ray disc.

Rumors began circulating last week that Toshiba, one of the largest backers of the HD DVD format, would discontinue support after retail giant Wal-Mart announced its decision to only sell Blu-ray discs in its stores.

"We carefully assessed the long-term impact of continuing the so-called 'next-generation format war'," said Toshiba CEO Atsutoshi Nishida. "[We] concluded that a swift decision will best help the market develop."

Sony's PlayStation 3 is currently the only gaming console equipped to play Blu-ray movies out of the box. Microsoft recently cut the price of its Xbox 360 HD DVD player, but would not comment directly on rumors that it would release a Blu-ray player add-on as early as May.

"It is premature to speculate about Blu-ray," a Microsoft representative told Shacknews. "But we do know from market data that HD movie playback is not a primary purchase driver for consumers buying video game consoles."

The price of the Xbox 360 HD DVD player add-on has dropped from $179.99 to $129.99, Xbox Live director of programming Larry "Major Nelson" Hyrb has announced.

The reduction is effective in the United States, Canada, Australia and New Zealand, and units sold at the new price will continue to include the five free HD DVD offer out of the box. The player's functionality is strictly limited to the play of HD DVD and DVD discs. In early January, Warner Bros. abandoned HD DVD in favor of Blu-ray, sounding the death knell of the format with the loss of one of its greatest supporters.

The add-on, originally debuted in November of 2006 for $199.99, and dropped to $179.99 in July of 2007. Microsoft has since reaffirmed that the company would consider a Blu-ray add-on for the Xbox 360 if consumers continue to support the format over HD DVD.

Acclaimed director Michael Bay, meanwhile, maintains that Microsoft is intentionally sabotaging both Blu-ray and HD DVD.

Acclaimed director and aspiring game developer Michael Bay (Transformers, The Rock, Playboy Video Centerfold: Kerri Kendall) has lambasted Microsoft's HD DVD initiative as a ploy meant to weaken the format and eventually strengthen the company's on-demand video service.

"Microsoft wants both [HD DVD and Blu-ray] formats to fail so they can be heroes and make the world move to digital downloads. That is the dirty secret no one is talking about," Bay wrote on his official forums.

"They want confusion in the market until they perfect the digital downloads. Time will tell and you will see the truth," he continued. "That is why Microsoft is handing out $100 million dollar checks to studios just [to] embrace the HD DVD and not the leading, and superior Blu Ray [sic]."

Microsoft is currently using the Xbox Live Video Marketplace to sell television shows and rent on-demand movies to Xbox 360 users in the United States. Just yesterday, the company announced it would be expanding the Video Marketplace to... Read more

Addressing rumors that Microsoft and Toshiba are prepping HD DVD-equipped Xbox 360 for late 2008 or early 2009, Toshiba has offered up two very different responses.

"It's got nothing to do with us," a Toshiba representative told Stuff. "But we know Microsoft doesn't want to include the HD DVD drive so as not to limit the user's experience."

However, the version of that story found on Stuff's official site tells a less definitive tale. "Toshiba has no comment to make on this matter," the rep said the second time around. "The Xbox 360 is not a Toshiba product."

According to Engadget, that first comment was later replaced ... Read more

Like a hyperactive toddler, the internet's well-worn gossip circle is once again entranced by the same shiny thing it was fascinated with months ago.

Quoting an inside source at Toshiba, Smarthouse claims that Microsoft is prepping an HD DVD-equipped Xbox 360 for late 2008 or early 2009. Other additions swirling around the long-rumored device include an HDTV tuner and some type of standardized docking port for MP3 players.

"An Xbox with a built in HD DVD drive is critical," the unnamed Toshiba employee apparently said. "They and we are working on it. It also has to be more than a gaming machine. Microsoft recognise this. A version of the device may also be sold under the Toshiba brand name."

The feud between HD DVD and Blu-ray has long been brewing, with both Microsoft and Sony positioning their respective consoles on opposite sides of the HD format war. Microsoft's decision to use standard DVDs with Xbox 360 games and its offering of the optional HD DVD add-on solely for movie playback has been criticized within the industry, as more and more developers claim they need the additional storage space available through the newer formats.

Meanwhile, Sony has faced numerous criticisms stemming from the PlayStation 3's higher price point, said in part to be a result of the company's choice to include Blu-ray support in every model. Both sides of the HD format war have begun offering recruitment incentives of free movies in exchange for the support of that particular format.

Teaming up with HD DVD promoter Toshiba, Microsoft has just announced an incentive for purchasers of its Xbox 360 HD DVD Player, giving U.K. customers who purchase the add-on between now and January 31 five free HD DVD flicks. The offer is slightly different than the recently begun HD DVD incentive for American customers, but matches Sony's existing promotion for five free Blu-ray movies with the purchase of a PlayStation 3 or select other Blu-ray players, which runs through January 31.

Purchasers of Toshiba HD DVD players or certain Toshiba HD DVD-equipped computers are also eligible for the U.S. offer, which runs longer than the U.K. promotion through February 28. Americans can pick five titles from... Read more

In the first news coming out of this year's San Diego Comic-Con, Microsoft today announced it would lower the price of its Xbox 360 HD DVD add-on player from $199 to $179 starting next Wednesday.

The company also noted that it will throw in five free HD DVD titles as an extra incentive, although the selection of titles amounts to a meager 15 offerings. Anyone buying the player between August 1 and September 30 will be eligible for the movies.

HD DVD proponent Toshiba already offers the five-movie deal on its line of stand-alone players. Competitor Sony also doles out a similar coupon with the purchase of qualifying Blu-ray players, including the PlayStation 3, allowing you to choose five free Blu-ray discs from a pool of 21 films.