Sony is in talks with console rival Microsoft about offering a Blu-ray drive for the Xbox 360, according to a senior executive.
The Japanese electronics maker has until now touted Blu-ray as an advantage its PlayStation 3 holds over Microsoft's console. Microsoft has backed Toshiba's HD-DVD format and offered an HD-DVD drive that can be plugged into the 360.
But after Sony's victory last month in the high-definition DVD format war, Stan Glasgow, Sony Electronics US president, said the two sides were now talking about Microsoft adopting Blu-ray.
A Blu-ray drive in a 360 would make Microsoft more competitive with the PS3, but it would also mean extra revenues for Sony's electronics division. It would also add further cost to the 360, meaning a premium edition of the console could be necessary.