Now that the Blu-ray format has taken the crown after Toshiba dropped HD-DVD, Microsoft is reportedly in talks with Sony about the Xbox 360 adopting Blu-ray. Sony Electronics U.S. president Stan Glasgow has revealed that discussions are on-going.

Nothing is concrete as of now, but considering how Microsoft was able to bring HD-DVD add-ons to consumers, it seems reasonable to believe that a Blu-ray drive attachment is possible. As pointed out by the Financial Times, the Xbox 360 can go head-to-head with the PlayStation 3 if it had Blu-ray, but Sony will still be earning revenues.

When asked for comment, Microsoft only stated that:

We 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.