Fresh from victory over HD DVD, there seems to be no end in sight for Blu-ray's ambitions. The latest rumours circulating the internet are that Sony is in deep talks with console rival Microsoft about the possibility of putting a Blu-Ray player into the Xbox 360. 

Ever since Toshiba's recently departed next-gen format went to the great obsolete technology dump in the sky, talks between the two companies have been getting more intense. According to reports from Wired magazine, Sony Electronics US president Stan Glasgow said the company is in talks with both Microsoft and Apple to add Blu-ray drives to their hardware.

But of course that would mean Microsoft paying Sony a licence fee on every Blu-ray equipped Xbox 360, but we doubt Sony would mind that situation even though it would make the PS3 have less of an advantage over the Xbox.

The rumour is also talked about in this article in the FT. The newspaper asked Microsoft for a comment and got this; "We have made no such announcement. Games are what are driving consumers to purchase game consoles and we remain focused on providing the largest library of blockbuster games available."

Of course, adding a Blu-ray player might make the Xbox 360 a tad more expensive, especially as a price cut for the console might be on the way.