There seems to be one last detail we need to take care of before we put the fork in the HD DVD format: The hard drive for the Xbox 360. It appears Microsoft is preparing to offer an Xbox360 with a stand-alone Blu-ray drive as early as May of 2008.
Michael Ephraim the Managing Director of Sony Computer Entertainment said: "We would welcome Microsoft to the Blu-ray stable. In fact it is quite logical for them as the PS3 has been very succesful in driving consumers to Blu-ray. In fact we believe that it has done more to win the format war than traditional Blu-ray player".
When asked whether Sony would grant Microsoft a Blu-ray licence he said: "That is up to Sony Corporate but I see no reason why they would not do it".
During CES 2006 the then Microsoft's Xbox corporate VP of worldwide marketing and publishing Peter Moore told Japanese site ITmedia that a Blu-ray Xbox 360 peripheral could appear for the system if the need arises. Moore admitted that Microsoft isn't sure of the next-generation format war's outcome, with the worst-case scenario being a repeat of the Beta vs. VHS war of the '80s.
SInce it's an external drive it's relatively easy for Microsoft to implement. Microsoft might never invest in an internal Blu-ray drive, betting that high definition video will go with a straight download format instead of a disk format.