It seems to me like the rumor is stating that the next Xbox console will have Blu-Ray, while Microsoft is simply denying that the current Xbox (the 360) will not receive Blu-Ray treatment. I still expect to see some sort of Super Elite Premium edition Xbox featuring an all blue design with blue controllers and of course Blu-Ray.
On the other hand, I've heard that Microsoft continued to back HD-DVD in an attempt to prolong the format war until digital downloads took off, so I could see them going the download route as well.
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It seems to me like the rumor is stating that the next Xbox console will have Blu-Ray, while Microsoft is simply denying that the current Xbox (the 360) will not receive Blu-Ray treatment. I still expect to see some sort of Super Elite Premium edition Xbox featuring an all blue design with blue controllers and of course Blu-Ray.
On the other hand, I've heard that Microsoft continued to back HD-DVD in an attempt to prolong the format war until digital downloads took off, so I could see them going the download route as well.