Following the market failure of the Xbox 360’s HD-DVD drive, Microsoft is currently in talks with Sony about adding Blu-Ray technology to their videogames console.
It’s unknown at this point whether Microsoft intends to start producing high-end variants of the 360 with a Blu-Ray drive built in, or to sell it as an add-on unit as they did with the HD-DVD drive.
Microsoft is currently pushing HD content on its console, with HD movies available for download via their online Xbox Live service. Sony is readying a similar digital download service for the PS3.
US Sony President Stan Glasgow has stated that he expects the cost of Blu-Ray players, currently retailing at $399, to fall to $300 by the end of 2008 and to around $200 by the end of 2009.
A price drop such as this would be consistent with that of DVD players back in 1999.