So what's the latest rumor to hit the video game community?  Blu-ray for Xbox 360, thanks to Microsoft CEO Steve Ballmer. 

In a recent interview, Ballmer was quoted saying something about Blu-ray drives as "accessories" for the HD console, and in true Internet fashion, everyone ran with it.

While Microsoft PR released a statement addressing the confusion, they weren't exactly clear on the issue either and only said Microsoft was "not ready to comment."  Apparently these companies haven't learned by now that "no comment" actually means "yes." 

However, it looks like that rumor has been clarified and debunked by Xbox LIVE frontman Major Nelson, who posted on his blog this afternoon.  Nelson, or Larry Hyrb, made sure he was heard loud and clear, unlike Ballmer and the squeamish spokespeople.  We've taken the liberty of including his entire message and emphasized key words with bold text...

During an interview yesterday, Steve Ballmer was asked about Blu-Ray and the Xbox 360. I wanted to clear something up. Steve was referring to Blu-Ray accessories for the PC. As we have said in the past, we have no plans to introduce a Blu-Ray drive for the Xbox 360. In fact, the future of home entertainment starts very soon when Xbox 360 becomes the first and only console to offer instant-on 1080p streaming HD movies. With a library of thousands of TV shows and movies to choose from, Xbox 360 owners can instantly watch the movies they want, when they want, in the highest form of high definition.

Well there you have it.  This should teach executives not to say random things without thinking first!  Yeah, we're not holding our breath for that one, and this probably won't be the last time the Major gets clean-up duty.