Microsoft in talks with Sony over a Blu-ray add-on for the 360

We all know that the HD DVD is dead, and Microsoft has killed off their add-on for the 360. We also know that Microsoft has been talking to the Blu-ray camp, albeit about a piece of software, but we now know that they are in talks with Sony about offering a Blu-ray add-on for the Xbox 360.

This information comes from a Sony exec, and Microsoft has yet to actually comment on the topic. Either way, it's good that Microsoft is at least entertaining the idea of a Blu-ray add-on. However, I can only wonder how much such a drive would cost. If they could release such a drive for the same $199 price-point as the HD DVD player, it could see some good sales.

This does bring up an interesting topic. Sony's PS3 has a distinct advantage of the 360 because of it's keen ability to play Blu-ray discs. If the 360 could do the same thing, the PS3 would lose one of its advantages. However, at the same time Sony's electronics devision would profit from the hardware sales, and the sales of Blu-ray discs. So this begs the question, which is the lesser of two evils for Sony?

[via FinancialTimes]