During CES 2006, Microsoft's Xbox corporate VP of worldwide marketing and publishing Peter Moore told Japanese site ITmedia that a Blu-ray Xbox 360 peripheral could appear for the system if the need arises. Moore admitted that Microsoft isn't sure of the next-generation format war's outcome, with the worst-case scenario being a repeat of the Beta vs. VHS war of the '80s.

However, he suggested that whatever the outcome of the HD-DVD/Blu-ray war, the Xbox 360 can adopt the dominant format since its uses an external drive. He also suggested that it's a weak point for PlayStation 3, saying Sony's system is stuck with Blu-ray. Microsoft hasn't announced how the HD-DVD peripheral will connect to the Xbox 360, but it's most likely going to use one of the system's USB ports. While the PS3 may come with Blu-ray out of the box, there's no apparent reason an external HD-DVD drive couldn't be hooked up through that system's USB ports.

Moore once again confirmed that the HD-DVD add-on for the Xbox 360 is only for watching movies, and there are currently no plans to use it for games, nor are there plans to release an Xbox 360 with an internal HD-DVD drive.