Sony and Microsoft in talks on Xbox Blu-ray drive

Sony has revealed that it is in talks with Microsoft, about creating a version of the Xbox video game console equipped with a Blu-ray high-definition DVD player.

This has been considered a likely move since Toshiba recently decided to drop the rival HD-DVD format, after which Microsoft said it would discontinue the HD DVD player it was selling for $129 as an add-on for the Xbox 360.

The proposed deal was revealed by Sony Electronics’ president, Stan Glasgow, at a media dinner in San Francisco, according to the Financial Times.

Glasgow also said that Sony is also talking to Apple about adding Blu-ray to Apple devices.

Sony’s own PlayStation 3 games console already features a built-in Blu-ray player.

Microsoft could still decide to reject Sony’s HD technology, and focus on offering high-definition downloads through its Xbox Live online content service.

Microsoft is confident that HD DVD’s discontinuation will not adversely affect Xbox 360 sales, which are games led rather than movie led.