Blu-ray on Xbox 360? Microsoft hasn't heard about it

Those hot/cold "Blu-ray coming to Xbox 360" rumors just cooled off a bit again, with product manager Aaron Greenberg telling Reuters "Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience". Clear enough? He also dropped the nugget that Microsoft expects to trail the PS3 in sales again in February, but should have things turned around by April, just in time for the GTA IV launch, which should also be right around the time this rumor rears its head again. In the meantime, digital distribution anyone?