While the Blu-ray on Xbox 360 rumours gained ground again over at the Tokyo Game Show this week, Microsoft's Xbox production boss has flatly denied that the company has any plans to adopt Blu-ray into the Xbox experience.

Microsoft's Aaron Greenberg denied that his company has any plans to add Blu-ray to Xbox 360.

"We have no plans to integrate Blu-ray into the Xbox experience," Microsoft's production boss told Major Nelson , following recent rumours that a contract has been awarded to Toshiba-Samsung Storage Technology Corp to produce an external Xbox 360 Blu-ray player.

The future's digital

Greenberg told the Major, in no uncertain terms: "We believe that we shouldn't force people to pay for things they don't want. We also believe that the future's digital, and that's why we've invested in a massive library of entertainment content, that's why we're bringing things like Netflix to members in the US, that's why we're growing our library in Europe, that's why we're adding all type of entertainment experiences around the world."

"And Blu-ray: who knows? I'll tell you one thing: if you look at retail sales and availability, there's not a lot there, and what is there is at a premium," said Greenberg.

"It's pretty clear it's not the next DVD" he added.

"I went to Sony's booth, and it used to be that their whole booth was Blu-ray. It just keeps shrinking down. Now it's just this little corner and there's no one there and it's like, there's a heart sign and it's got 'Blu-ray' and some movies. It's interesting."

TechRadar has contacted the Toshiba-Samsung Storage Technology Corp. directly in Japan for further comment. We will update this news the second we hear back from them.