The web site later asked Microsoft's PR department about Ballmer's comments.

"Our immediate solution for Blu-ray-quality video on an Xbox 360 is coming this fall with Zune Video and 1080p instant on HD streaming. As far as our future plans are concerned, we're not ready to comment," the spokesman said.

The semi no-comment has fueled speculation that Ballmer was letting the cat out of the bag. If true, it would be good news for Blu-ray enthusiasts who were disappointed that Apple failed to include a Blu-ray drive in the new Mac.

Microsoft, which backed HD DVD in the format war against Blu-ray, once sold a HD DVD accessory drive for the XBox 360 console.

Update: Another Microsoft spokesman later in the day denied that Ballmer's comments suggested the company is preparing to launch a Blu-ray drive for the XBox. So, on it goes.

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