You've heard the rumour: Microsoft will be announcing a Blu-ray Xbox 360 on Monday morning at 10am KT (Kotaku Time). Apparently Microsoft is gunning to upstage the Apple Worldwide Developers Conference. Check out what Microsoft Entertainment & Devices Division President Robbie Back has to say about that rumour:
Our plan continues to focus on high-definition experiences. Xbox 360 has a great ability to deliver those through the Xbox Live (online download) service. It's a great way to get the high-definition concept because it's right there. There's no additional media. There is nothing you need to purchase.
If you look at the Blu-ray player market, you haven't seen the acceleration everybody expected (since the demise of HD DVD). It's not as much about whether all the content is in a Blu-ray format or a HD DVD format. You have to look at how fundamentally compelling the difference is between a progressive scan DVD player and the picture that it can produce and what you get on a high-definition player. The reality is there is some difference, but most people look at it and say, "I am not going to pay extra for that".
There is nothing to even talk about [Blu-ray Xbox 360 plans]right now with regard to the next generation. That is so far out that there isn't anything to talk about.
Also in the interview, Bach states that there is "no real projection" on when the next Xbox iteration will be introduced. While adding that the company is always thinking about the future versions, Microsoft simply doesn't have anything to discuss at the moment. "The last generation for the Xbox was a little short because we entered the market a little bit later in the cycle", says Bach. "I suspect this time the cycle will be a little bit longer for us".
Robbie Bach Interview [SFGate Thanks, Ben!]