Steve Ballmer has told Gizmodo in an interview that soon you'll be able to watch Blu-ray movies on your Xbox 360.

Microsoft's CEO made the admission when asked whether Blu-ray was coming to the console, and gave the surprising answer: "Well I don't know if we need to put Blu-ray in there—you'll be able to get Blu-ray drives as accessories".

Instead, Ballmer believes that streaming services will supply most of the demand for HD content in the "immediate" time-frame. The Xbox is getting Zune video shortly, complete with instant-on HD streaming, but Microsoft's PR refused to comment to Gizmodo about future plans for the console.