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Microsoft Entertainment & Devices Division President Robbie Bach told the San Francisco Chronicle that the highly-speculated Blu-ray enhanced Xbox 360 is still nothing more than a high-def dream.

"If you look at the Blu-ray player market, you haven't seen the acceleration everybody expected (since the demise of HD DVD). It's not as much about whether all the content is in a Blu-ray format or a HD DVD format. 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.'

There is nothing to even talk about [Blu-ray Xbox 360 plans] right now with regard to the next generation. That is so far out that there isn't anything to talk about."

Read the entire interview here.