Speaking to the BBC, Thompson is 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."

Thompson's comments come as Sony's Blu-ray enabled PlayStation 3 hits the shelves in Europe, the Middle East and Australia. Microsoft plans to release an optional HD DVD player for the Xbox 360 next week, but Thompson's comments leave open the possibility of an optional Blu-ray player in the future.

The XBox 360 comes with a 20GB hard drive and the optional HD DVD drive will sell for $AU250, on top of the $AU650 for the Xbox 360 Premium Pack or $AU500 for the Xbox 360 Core System.

The PlayStation 3 comes with Blu-ray as standard but sells for $AU1000 with a 60GB hard drive. The 20GB PlayStation 3 model will be closer to $AU800 but Sony is holding that out until later in the year, ensuring early adopters are forced to pay top dollar.

Microsoft is also rumoured to be soon releasing a $AU750 Black Xbox 360 with a 120GB hard drive and HDMI output as a spoiler to the latest PlayStation 3 launch.

Sony is banking on the PlayStation 3 to help Blu-ray defeat HD DVD in the format war and has already taken the front foot in the propaganda war. Recently Blu-ray Disc Association chairman Frank Simonis said that Blu-ray discs were now out-selling HD DVDs by 3:1 in the US - a claim disputed by Deputy General manager of HD DVD at Toshiba, Olivier Van Wynendaele. He said the Blu-ray camp's "propaganda" relied on Blu-ray vouchers given away with PlayStation 3 games console to fudge the numbers.{moscomment}