"Just two days back, we reported that Sony is busy wooing Microsoft to add Blu-ray support to its Xbox 360 gaming console.
The effort's paid off (or so it seems) -- with Microsoft now confirming that it's trying to figure out the best way to connect with Blu-ray. The company also seems to be working on ways to include device driver support for Blu-ray drives in its Windows operating system.
Incidentally at the Mix '08 conference in Las Vegas, Microsoft CEO Steve Ballmer said, "We have 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."
Taken from Techtree.com
After the death of HD-DVD Microsoft announced that they would be discontinuing the HD-DVD add-on, leading on to discussions between Microsoft and Sony regarding the possibilities of a Blu-ray add-on, or even a fully integrated drive for future SKUs. The result of this would be an increased price point for the Xbox 360, along with a portion of all hardware revenue going to Sony. Yes, that means Sony would be making money off of every 360 and PS3 sold.