"The Financial Times is reporting today that Stan Glasgow, President of Sony Electronics, has stated that there have been discussions with Microsoft to incorporate a Blu-ray drive into the Xbox 360. 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.
Of course, Microsoft are being coy about this entire thing, stating that they have "made no such announcement. Games are what are driving consumers to purchase game consoles and we remain focused on providing the largest library of blockbuster games available." Nothing new there, then. Nothing's confirmed yet, but we're intrigued to see where (if anywhere) these talks will lead."
As a Sony fanboy, I would like to go find Xbox fanboys and rub it in their faces, but most of them are jocks and 13 year old boys, so they wouldn't comprehend the massive defeat that Microsoft just suffered. I'll be back to insert a simile of the colossal spin this puts on the game.
I'm a PS3 fanboy