Hedging its bet on HD-DVD as the standard for the next-generation DVDs, Microsoft on Wednesday left open the possibility of selling a Blu-ray DVD player for its Xbox 360 game console.

The plan adds another layer of doubt in the heated battle between HD-DVD and Blu-ray for dominance of what is expected to become a $40-billion worldwide market. Until now, Microsoft has been one of the strongest backers of the HD-DVD technology being championed by Toshiba.

However, Peter Moore, Microsoft’s point man for its Xbox, was quoted by the Japanese web site ITMedia as saying Microsoft would offer the Blu-ray drive if it becomes the favored standard over HD-DVD. Redmond scrambled to couch the remarks in a softer light.

Find out if the Xbox will offer a Blu-ray drive at http://www.redherring.com.