Earlier this week speculation was running rampant about the possibility of Microsoft's upcoming HD DVD player for the Xbox 360 playing HD DVD format games in the future. The rumor apparently stems from comments made by Microsoft Game Studios general manager Dave Luehmann, who told Consumer Electronics Daily that HD DVD games had been ruled out for this holiday season but that a decision beyond this year had not yet been made.

Now, however, it would appear that we can all forget about the idea of HD DVD games running on an Xbox 360. On his Gamerscore blog, Microsoft's group manager of online marketing communications John Porcaro has squashed the rumor outright.

"I'm seeing lots of speculation about our upcoming HD DVD Player, and whether we have plans to publish HD DVD games. The answer is no," he plainly stated.

Porcaro continued, "Since announcing the Xbox 360 HD DVD Player accessory at E3 2006, we've been clear that it is designed exclusively for playing HD DVD movies. It will not play games on HD DVD."

He also reiterated Microsoft's position that new DVD formats such as HD DVD and Blu-ray aren't really necessary for games and would only increase costs.

"At this point, we haven't seen anything to suggest that next-gen DVD formats offer a better game experience than current DVD. What we do know is that these formats will bring added cost to game developers, disc manufacturing, and could even result in added costs and longer load times for the consumer, which would negatively impact the game experience. We are focused on making great HD games available to consumers now, and games like The Elder Scrolls IV: Oblivion clearly show that beautiful high def graphics and huge, immersive worlds to explore are possible on the DVD9 format," Porcaro concluded.

Clearly, Sony disagrees. The PlayStation 3's Blu-ray drive, Sony argues, will be necessary as developers strive to create more intricate and expansive worlds, which will require larger capacity storage mediums. Indeed, some Japanese developers have stated that the Xbox 360's standard DVD has frustrated them with its limited capacity and the fact that multiple discs would be necessary for certain titles. On the other hand, it's certainly a tradeoff, as Sony's Blu-ray is one of the major ingredients for driving up the cost of the system—something that has been haunting Sony with negative press since the $600 price tag was announced at this year's E3.