Microsoft planning a Blu-Ray Xbox 360 – crazy talk?

That eminently creditable source, “insiders at Microsoft,” has suggested that the fan-favorite Redmond company is working on a Blu-Ray flavor of the 360. Sony says they’d love to “welcome Microsoft to the Blu-Ray stable,” which has uncomfortable connotations and implies a pimp-like status for Sony. Well, maybe they have the right after Toshiba did its thing the other day. We’ll be on the lookout for further news on this strangely friendly rumor.

Blu-ray Xbox 360 Planned By Microsoft [Smarthouse]