Intrigue! It looks like Microsoft was hedging its high-def disc bets with the revelation that it was in talks with the Blu-ray folks “all along.” Even though it currently backs HD DVD, the truth of the matter is that the Xbox 360’s high-def disc playback is largely a matter of built-in software. The implication is that with the flick of a switch Microsoft could add Blu-ray support to the 360.
It should be noted that even though Microsoft currently is in HD DVD’s corner, its actual, long-term position on the format war seems to be “yeah, this is all temporary.” Save for Steve Jobs, no executive, to my knowledge, has been as bullish on digital downloads of movies, high-def or otherwise, as Bill Gates.
But yes, Microsoft was in talks with Blu-ray. Let the mudslinging begin.