The news was brought up to the table by Stan Glasgow, Sony Electronics US president. Speaking at a media dinner, Glasgow admitted that the company has been talking Blu-ray with both Microsoft and Apple, the Financial Times reports.

Still, the move could prove a slippery road for Microsoft. A Blu-ray drive would indeed make the console keep up with the PlayStation 3, in terms of next-gen hardware. After all, the drive is one of the PlayStation 3’s unique strengths, and taking it away from Sony means a lot for the Redmond company.

On the other hand, the addition of such a drive would mean a more expensive console, a tough deal especially since Microsoft has been reported to be planning a price cut in Europe. Perhaps Microsoft would choose to promote the drive the same way they did with the HD DVD device: a separate retail. Or they might as well release a new premium edition of the console.

Truth be told, the safest bet would be that the full integration of a Blu-ray drive would occur in a couple of years, if not in the next edition of the Xbox console.