From DailyTech: 

Steve Ballmer says that Microsoft will be going forward with Blu-ray Disc support

In front of an audience at the MIX08 Internet conference, Microsoft chief executive Steve Ballmer let it be known that the software giant will work with Blu-ray Disc technology now that HD DVD is out of the running. Microsoft was previously one of the exclusive backers of HD DVD.

Ballmer was quoted by the Seattle-PI as saying, “We've already been working on, for example, in Windows, device driver support for Blu-ray drives and the like, and I think the world moves on. Toshiba has moved on. We've moved on, and we'll support Blu-ray in ways that make sense.”

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