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Multiple tech news sources earlier this week suggested that Microsoft may be looking to produce a Blu-ray player for the Xbox 360 after all, despite the console and software giant's previous insistence against supporting the high-definition optical disc format pushed by rival Sony.  In light of these fresh rumors, Microsoft continues to deny it has plans to pursue an external Blu-ray peripheral drive for its console.  Indeed, Microsoft has yet to confirm any Blu-ray player thus far into the Tokyo Game Show.

Originally a backer of Toshiba's now waning HD-DVD format with an add-on drive for the Xbox 360, Microsoft would shy away from the HD-DVD vs. Blu-ray food fight altogether and instead emphasis the virtues of digital distribution and movie downloads and rentals over the Xbox Live Marketplace.  This is especially true now that Microsoft's "New Xbox Experience" is about to roll out, giving XBL a major makeover.