Now a new interview with Microsoft gaming vice president of business Shane Kim has all but killed the hope of seeing Sony's player matched with its rival's console.

"I can categorically say that we're not working on a Blu-Ray player for Xbox 360," said Kim in an interview with Forbes. "To my knowledge, we don't have any intent to do that."

According to Kim, Microsoft is more interested in digital distribution. The company announced this week that Netflix will begin streaming movies and television over the Xbox 360 starting this fall.