With the BLu ray winning over HD DVD, Sony and Microsoft are in talks. This is a very interesting time for Sony, as if Microsoft does include a Blu RAy drive, it would make the console the Xbox more expensive, but if they don’t the Xbox user will lose out on HD movie content. Many believe that the Xbox will opt for a external drive for watching movies, although this makes sense, I think it will be an issue at a later stage. Xbox user will have to play games on DVDs, which will soon prove to be limited in terms of space. here is some more news from Gamespot.

Citing an unnamed “senior executive,” the Financial Times said that Sony and Microsoft are not simply discussing a successor to the Xbox 360’s now discontinued, dirt-cheap external HD DVD drive. The newspaper said that there is also the possibility of an internal Blu-ray drive being incorporated into a new, more expensive “premium” 360 model, as it is already in the PlayStation 3. Thusly, Sony would earn royalties from sales of a rival console–a first for the game industry.For its part, Microsoft quickly denied any move toward Blu-ray had been officially made. “We have made no such announcement,” a rep told GameSpot. “Games are what are driving consumers to purchase game consoles, and we remain focused on providing the largest library of blockbuster games available.”if the deal works out Sony will actually make money from Xbox sales, which will be a first in console history.