A senior Microsoft executive has suggested that the Xbox 360 could go Blu-ray if there's enough demand for a suitable add-on drive. Albert Penello, group marketing manager for Xbox hardware, told Reuters that it was something the company would have to consider if the HD DVD format failed.

Commenting on Warner's decision to abandon HD DVD In favour of Blu-ray, Penello said:

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

"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."

No impact on Xbox

Penello doesn't believe that Blu-ray's victory will have a significant impact on Xbox sales when compared to the Blu-ray toting PlayStation 3.

Rumours suggested that Microsoft might launch a version of the Xbox 360 with a built-in HD DVD drive at CES 2008, a move that has subsequently been denied by the company. Bill Gates' swansong keynote on Sunday also lacked any significant Xbox developments.