When told that rumors had flared up again about a Blu-ray Xbox 360, Bach added the rumors are "so far out that there isn't anything to talk about."
When asked if he felt HD disc formats were a failure so far, Bach added, “You have to look at how fundamentally compelling the difference is between a progressive scan DVD player and the picture that it can produce and what you get on a high-definition player. The reality is there is some difference, but most people look at it and say, "I am not going to pay extra for that."
In the wake of anticipated 3G iPhone launch today, Microsoft is expected to make a new product announcement as well, and it appears the product will be a touchscreen Zune.
We will update the article when we know the announcement for sure.