In a recent press release Microsoft stated yet again that if Blu-ray wins the format war then Xbox 360 will be able to support the format via an external Blu-ray drive.

At present the Xbox 360 comes with an optional HD DVD player, it is the cheapest such player on the market and plugs into the 360 via a USB port allowing players to watch movies and TV shows in High Definition. Microsoft claim that this makes them capable of supporting whichever format wins the war. Sony meanwhile have a vested interest in Blu-ray as it comes built-in as standard - the PS3 will be essentially defunct should Blu-ray lose out. Forecasters think this eventuality highly unlikely, quoting the past successes of the PS1 and PS2 - a long history of consumer satisfaction and loyalty plus great expectations for the titles yet to be released on what is essentially a more powerful platform. PS3 sales have been greatly hampered by a series of botched launches, delays and marketing blunders but with the PS3 finally in stores in the UK sales of Blu-ray discs are outselling DVD HD discs for the first time.

Both gaming systems offer the cheapest high definition video disc players on the market. The Sony PS3 is heavily subsidised in order to secure the future fortunes of the Blu-ray format, it is estimated that Sony loses around 200 USD for every unit sold.

During an interview with the BBC last week Xbox UK head Neil Thompson was quoted as saying, 'Whatever format wins it is highly likely we will offer a solution. The only debate is if you want to watch Blu-ray movies and pay the extra money for that feature. We prefer to offer the consumer choice.' Read between the lines if you will, this sounds to us like gentle reassurance for consumers that they can still buy an XBox 360 even if HD DVD is starting to look like an early loser. Perhaps its not surprising that Microsoft is willing to show signs of conceding so early. With most major Hollywood studios already backing Blu-ray it would be foolish of Microsoft to sacrifice the entire Xbox gaming platform on a format that is essentially still an optional add-on. Sony, the very creators of Blu-ray can afford no such luxury and the news from the PS3 camp is as brassy as ever, bragging that it is not a question of if but simply when Blu-ray surpasses HD DVD.

It is not the first time that Microsoft has shown signs of buckling in the format war. Way back in 2006 Peter Moore, Microsoft Xbox corporate VP of worldwide marketing and publishing told Japanese games site ITmedia that a Blu-ray Xbox 360 peripheral could be provided the for Xbox 360 should the need arise.

Nobody was surprised in 2006 when Gates announced his full support for the rival format of sworn enemy Sony. But is rivalry reason enough to plunge the coming of high definition gaming and video playback into a format war? Wouldn't it be better if everyone could just get on? Who do you think will win - HD DVD or Blu-ray? Post a comment below, we would love to hear your opinions.