Blu-Ray is currently in the middle of a fierce retail battle with rival format HD-DVD as both strive to become the high definition movie standard of choice. Whilst PS3 comes with Blu-Ray functionality included in the machine, Microsoft has to date only offered an HD-DVD add-on for its Xbox 360.
However, this could change, according to Thompson: "Whatever format wins it is highly likely we will offer a solution. The only debate is if you want to watch Blu-ray movies and pay the extra money for that feature. We prefer to offer the consumer choice."