Microsoft unlikely to release Blu-ray drive

Schappert also hinted strongly that Microsoft would be unlikely to bother with a Blu-ray drive precisely because the HD-DVD add-on sold poorly.

"We have no plans to announce anything like that right now. But I'd also urge you to look at the attach rate for the HD-DVD drive," he said.

When asked what he meant, he clarified: "It was a 3 percent attach rate...you also have to take into account how did the other accessory do when you look at the future."