Microsoft has told CVG that it considers digital media - and not the Blu-ray disc - the 'future of home entertainment'.
Calls for Microsoft to increase the capacity of its games media have grown since Lost Planet 2 producer Jun Takeuchi said that Capcom had to cut content from the Xbox 360 version of the game due to size restrictions of the DVD format.
However, director of Xbox and Entertainment at Microsoft Stephen McGill told CVG this week:
"We have no plans to adopt [a] Blu-ray drive for the Xbox 360. In fact, the future of home entertainment started last autumn when Xbox 360 became the first and only console to offer instant-on 1080p streaming HD movies."
McGill's comments come after the God Of War III developers at Sony Santa Monica praised the 50GB capacity of PS3's multi-layered Blu-ray discs.
Microsoft CEO Steve Ballmer hinted earlier this week that there will be revised models of Xbox 360 coming 'in the future'.
250GB Xbox 360 'Super Elite' models are now available in bundles with games such as Final Fantasy XIII and Forza 3.
Look out for CVG's full interview with Microsoft's Stephen McGill tomorrow.