In an interview with Gizmondo, Ballmer replied to questions about Blu-ray compatibility by saying: “I don't know if we need to put Blu-ray in there – you'll be able to get Blu-ray drives as accessories.”

A clear statement that Microsoft intends to release a Blu-ray drive? Prossibly not. Ballmer is famous for making gaffs and recently had to retract a statement which implied a new model of Xbox 360 would be released this year – after becoming confused about plans for Project Natal.

Microsoft commented: "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."

Having a Blu-ray accessory actually makes very little sense when considering Microsoft's strong approach to digital distribution and Ballmer may have simply got his words mixed up. Bless his billion dollar cotton socks.