Microsoft denies Xbox 360 is Blu-ray bound

Microsoft's Xbox division and Sony aren’t chatting about incorporating Blu-ray into the Microsoft console, despite a Sony executive stating that the two companies are discussing the HD technology.

Sony US' President, Stan Glasgow, confirmed last week that talks between the two companies had taken place, though he didn’t say that the negotiations centred on the Xbox 360.

Yesterday, Microsoft's group product manager for Xbox 360, Aaron Greenberg, went on record to say that the two were not discussing bringing Blu-ray to the Xbox 360.

The Xbox team "is not currently in talks with Sony or the Blu-ray Disc Association about integrating Blu-ray into the Xbox experience", he told Reuters.

Microsoft’s denial doesn’t rule out the possibility of a Blu-ray enabled Xbox 360 in the future, only that two pair aren't chatting about it at the moment. In the past, company executives have said it will consider such a move if its customers demand it.

The software giant last month canned production of its HD DVD add-on drive, following Toshiba’s recent decision to dump the failed format.

Greenberg added that, in Microsoft’s opinion, the Xbox 360 is still better value than Sony’s PS3. No surprise there. However, retail prices for both consoles have dropped significantly since their initial launches, with Microsoft last week slashing the cost of each Xbox 360 model by around £40 (€55/$80).

If Microsoft shuns Blu-ray then what else could be in store for the Xbox 360? The company may opt to invest more heavily in online content downloads for the Xbox Live service, which already offers films.