UPDATED: Sony to profit off of the Xbox 360 with Blu-ray?

  • Posted March 7th, 2008 at 13:57 EDT by
  • 11,210 views
  • 91 Comments

Just before GDC last month, Sony came through with an illustrious victory as Blu-ray became the winner of the HD format war. This resulted in an extra ray of light over the PlayStation 3 console which supports the Blu-ray format right out of the box. With its competition not having any physical HD format support out of the box, this has given the PS3 a clear advantage. All of that could change as Sony and rival Microsoft, has entered talks regarding their console supporting Blu-ray.

Stan Glasgow, Sony Electronics US president has confirmed that both Sony and Microsoft have entered negotiations that would allow Microsoft to implement the Blu-ray format into the Xbox 360 gaming console. Many would consider this business decision suicide, as this would take away from the considerable advantage that the PS3 has over the 360, however, Sony would gobble up extra revenue through this deal as compensation to the Sony Electronic's division. The options that Microsoft has are varied. They could introduce a new SKU that supports Blu-ray built in with a more expensive price point or create yet another add-on similar to the HD-DVD one currently available. Either way, Sony would collect compensation on every unit sold whether it is an add-on or a full unit with the format built in.

Microsoft however has interestingly enough declined such negotiations:

”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.”

This is still very early so please do not read into this fully just yet. We will keep you up to date regarding anything of relation to this business deal.

Source

UPDATE:

We can now reveal to you that Microsoft is indeed working with Sony to allow the Xbox 360 to become Blu-ray accessible. Speaking yesterday in Las Vegas, Steve Balmer, the CEO of Microsoft had this to say:

"We've already been working on, for example, in Windows, device driver support for Blu-ray drives and the like, and I think the world moves on. Toshiba has moved on. We've moved on, and we'll support Blu-ray in ways that make sense."

Did Mr. Balmer go too far and reveal something that Microsoft was not ready to let loose? All we know is that the Xbox 360 will in some way or form be allowed to play Blu-ray movies. This will seriously affect the sales of both sides as Microsoft can now say that the 360 can also play Blu-ray movies while the PS3 loses its advantage of being the only console to offer Blu-ray support. However, Sony will also gain extra revenue through this. So it is a win/lose situation for Sony and one we will closely have an eye on.

It looks like the days of the PlayStation 3 being the only Blu-ray+Game console is starting to come to an end.

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What are your thoughts?

  1. BabeBro | BabeBro

    • 1:58am GMT - March 7th, 2008

    Follow the leader :) Sony did it up with Bluray. Kudos to them.

  2. butchyz

    • 2:03am GMT - March 7th, 2008

    Of course Microsoft is interested, they aren't dumb. However, I don't think this is a logical move by Sony as even though they might turn a profit, they are still aiding the enemy. It's like upgrading your opposition guns. Either way, I doubt MS will use this in the 360... perhaps on their next x box....

  3. djrussell | djrussell89

    • 2:06am GMT - March 7th, 2008

    I think it'd be suicide for them to do it.. even if they had to pay royalties. It doesnt matter.. at the end of the day a lot of people buy the PS3 because of the inbuilt Blu-ray player, and for Microsoft to advertise the same for the 360 would mean a lot of people would go for the cheaper alternative.

  4. vipergts2207 | D-Smitty

    • 2:08am GMT - March 7th, 2008

    ”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.” Then what the heck was the HD-DVD add-on for. Oh yeah, just to try to prolong the format war.

  5. liquidghost | LiquidGhost

    • 2:09am GMT - March 7th, 2008

    its really not a logical move by microsoft to do this because the add on will only profit the 360 for people who want to watch blue ray movies on the other hand with the games on 360 they will still be made in dvd9 format thats one main reason the microsoft's 360 has failed due to the technology that came out after it was realsed

  6. AclayPS3

    • 3:12am GMT - March 7th, 2008

    I already know what Microsoft plans to do, they are going to just introduce a add-on Blu-Ray DVD player like the previous HD-DVD add-on.

    Microsoft isn't going to make a Xbox 360 that has Blu-Ray built in because no one would buy it. Xbox 360 owners don't care about a console that has built in Blu-Ray, they just want their Gears of War and Halo. If Microsoft installed Blu-Ray in the 360, it would cost at least $350 -$400 minimum. Plus, if Microsoft isn't going to use Blu-Ray DVD's for it's games (they never will because it's too late), there is no need for Microsoft to come out with a 360 with Blu-Ray built in.

    If Microsoft didn't install a HD-DVD drive in the Xbox 360 from the beginning or a year or so after the 360 came out ,there's no way that they will install Blu-Ray in the console, I'm about 95% sure that it will be just a Blu-Ray DVD attachment that must be purchased separately.

    It's good that Sony will be making off of Microsoft now! Come on 360 owners, buy up those Blu-Ray attachments, you are just making Sony richer and making the Playstation community happy!

  7. Odium_Generis_Humani

    • 3:28am GMT - March 7th, 2008

    @djrussel

    Why are you assuming that a new XBox 360 with a built-in Blu-Ray would be less expensive?  All it would do is push the price UP to where the PS3 is.  They would then become (on one level) the same machine.

    Another thing is, why would one side say they're considering it, and the other side say they're not?  Did Sony doublecross MS by spilling the beans?  Like, MS whipsers: "Hey, um...Sony and the BDA...can we use your stuff?"  And Sony goes "WHAT WAS THAT!?  YOU WANNA USE BLUUUU-RAAAAAAY?!"  Lol.

    By the way, they shouldn't allow them to use it...

  8. Chuck-Norris909 | Chuck-Norris909

    • 3:30am GMT - March 7th, 2008

    PSN ID: Chuck-Norris909 .....Sony can't be that dumb to let Microsoft put the blu-ray player inside their new sku. If anything, give those chumps the add-on and call it a day. Sony needs to keep the advantage in this console war. If Microsoft releases a blu-ray sku, then Sony could lose some exclusives. Games like Resistance, Metal Gear, GT5, Uncharted, Killzone 2 and Heavenly Sword can only fit on a blu-ray disc. So if Microsoft releases a blu-ray sku, some of those games will go multi-platform.

  9. FairladyZ33 | fairladyz33

    • 3:42am GMT - March 7th, 2008

    i f**ken hate microsoft!! not just the 360 but windows

  10. Staude | Staude

    • 3:58am GMT - March 7th, 2008

    "Another thing is, why would one side say they're considering it, and the other side say they're not?  Did Sony doublecross MS by spilling the beans?  Like, MS whipsers: "Hey, um...Sony and the BDA...can we use your stuff?"  And Sony goes "WHAT WAS THAT!?  YOU WANNA USE BLUUUU-RAAAAAAY?!"  Lol."

     

    exacly my thought XD

  11. dj_sup3r1or | sup3r1or

    • 4:43am GMT - March 7th, 2008

    I think they should tell MS to FO, so they will loos definately.

    Extere I would say let them make add on that will play movies only like HD-DVD addon

  12. Alti | Alti

    • 5:14am GMT - March 7th, 2008

    lol, they can't sell the 360 with a BRD player at an affordable price. lol... it won't happen.

  13. VEGAZ5

    • 5:39am GMT - March 7th, 2008

    scew M$ they deserve nothing

  14. frank_magnet | Frank_Magnt

    • 6:06am GMT - March 7th, 2008

    Ha ! Microsoft shouldnt have backed the wrong format just to cause a rift in the HD market.

  15. GuitarMaster231 | Cody0705

    • 6:19am GMT - March 7th, 2008

    There really is no point in having a built in player for the 360 in my opinion. The only function it would serve is movies because microsoft already has millions of units out there without blu-ray players so games couldn't be made on blu-ray. The price would be bumped up to around the same as the PS3 anyways and that would eliminate the benefit of having blu-ray.

  16. terminator12259 | tacitassassin25

    • 6:31am GMT - March 7th, 2008

    the add on wont play games so it doesnt matter, it wont talk away ps3 sales

  17. richkaos | richkaos

    • 6:34am GMT - March 7th, 2008

    Dont do it Sony let MS squirm and suffer, plus let them develop their OWN format. As time goes on the 360 and MS are going to fall further and further behind and unless they come up with a solution their games are certainly going to get left in the shadows. Take MGS for instance they are already saying that it strugles to fit on 50GB blu ray disks so what chance do they have with plain old DVD. They may and try to rely on download content but that cuts a big proportion of the market out, Sony were very clever to incorporate the blu ray player for both movies and games. You see this is the difference between the two camps MS wanted to rush out their console as they knew the only chance of stealing a lead was to launch a year early were as Sony would rather bide their time and do it right first time

  18. scoob1 | scoob1

    • 6:45am GMT - March 7th, 2008

    they will need to make there money back so it would cost more. Sony make sure it F 's up!

  19. jamisonsalamande

    • 7:05am GMT - March 7th, 2008

    Once again, stuck up stupid companies can't admit what is inevitable. The 360's standard dvd's are not enough for real size games come a year from now, but of course M$ would be too stuck up to admit that as well

  20. Paranoimia | Paranoimia

    • 7:16am GMT - March 7th, 2008

    Would MS really be interested in adding a built-in Blu-ray drive, releasing future titles on BD-ROM, and alienating all those who have already bought 360's?

     

    He11 yes! Like they give a stuff about their customers... if they did, they'd have made the 360 reliable in the first place!

  21. naruto007

    • 7:49am GMT - March 7th, 2008

    its not a good idea giving a Bluray addon to MS its one of the pros of the ps3 and letting the 360 use it could mean 17millions 360 users skipping a ps3 and just buying the addon.

  22. PerezStation3 | HYper_MAN456

    • 8:06am GMT - March 7th, 2008

    Wow! Its like the devil and god shaking hands! If they get blu-ray, we should get Windows Messanger! Fair trade!

  23. wiggsj

    • 8:40am GMT - March 7th, 2008

    Eitherway SONY will win in this situation!  This will be one aspect of what puts them back on top!

  24. gingo | gingo

    • 8:41am GMT - March 7th, 2008

    psn id: gingo... i think this is good for sony on a business side becasue they will make al ot of money out of it plus people will still look at ps3 as being the console with the blu ray from the start so will probably pick that

  25. suntzu | OmegaRed78

    • 8:56am GMT - March 7th, 2008

    Again this is why Playstation is best when it come to hardcore gaming. If this true I think alot of Xbox360 owners would feel some what betrayed. They will be like f@#% why didn't I get a PS3 instead I predict that GameStop, EB, PlayTrade, etc would recieve alot of system trade-ins. I mean what other must have games does 360 have beside GOW 2 and Halo Wars.

  26. Deusthousand | Deusthousand

    • 9:06am GMT - March 7th, 2008

    I dint think they should let them get it, but at the same time it would raise the price up to that of ps3. And people would know that ps3 is better at that price but they wouldnt put it in the system maybe add on. They know that too cuz they probably cant make a crapbox with BD built in that will actually work. Crappy console. @ suntzu why is GOW2 a must have game? We dont know anything about it yet there has been no news on it except for unreal engine which isnt what they fit into a dvd disc.Might be as glitchy as GOW1.

  27. Dark_Halo34 | Dark_Halo34

    • 9:20am GMT - March 7th, 2008

    don't do it sony!

  28. TekkenLord | HitMan00

    • 9:52am GMT - March 7th, 2008

    after all the talk about blu ray isn't good, lol what losers. if i was sony i won't give them anything at all.

  29. hush404 | hush404

    • 9:52am GMT - March 7th, 2008

    Ha, apparently Microsoft hasn't seen Sony's upcoming 2008 lineup? I think they're going to have to change their opinon of being the company that is dedicate to "blockbuster like games". But really, do you expect PO'd 360 gamers to spend more money on another addon?

    ALSO, LMAO AT Odium's

    "Like, MS whipsers: "Hey, um...Sony and the BDA...can we use your stuff?"  And Sony goes "WHAT WAS THAT!?  YOU WANNA USE BLUUUU-RAAAAAAY?!"  Lol."

  30. NoStop | hush404

    • 10:27am GMT - March 7th, 2008

    i have 2 blu ray players and  2 PS3 why would i need a blu-ray add on for my Elite.. does not make sense to me.

  31. goldenman96 | goldenman96

    • 10:47am GMT - March 7th, 2008

    i wish phil harrison was back he would save us

  32. D3v1lwqer23 | goldenman96

    • 11:17am GMT - March 7th, 2008

    Boy those meetings are gonna be tense.

  33. The Mask | JSack20

    • 11:26am GMT - March 7th, 2008

    if microsoft added blu-ray to the 360 it would not only prove that they a liars and always have been, but it would mean that they have to make 2 versions of every game or a new sku and an external drive, the only plus side to this for sony besides the money they get given would be the fact that all the multi-platform games would actually be good on the ps3 rather than having 15-20gb of free space left on the disk - although the 360 lacks in proccessing power which is bad- although that's multi-platform for ya.

  34. iplayonlysony

    • 11:28am GMT - March 7th, 2008

    lol @ goldenman96.

    Yeah, Microsoft would be hypocrites if they did add blu-ray to the 360.

  35. Petruccio

    • 12:15pm GMT - March 7th, 2008

    I do not know who created CD, DVD formats, but everybody uses them. BD is confirmed next generation of storage media. It was a matter of time. If BD failed we would see Sony licensing HD-DVD or creating new format.

  36. suntzu | OmegaRed78

    • 12:23pm GMT - March 7th, 2008

    @NoStop not everyone is as blessed as you are. @Deusthousand I agree with you, but Gears of War is Xbox 360 system seller beside Halo since there trilogy has ended. I have all three consoles in my home the Xbox 360 belongs to my teenage son and the Wii belongs to my youngest. PS3 happens to be my console of choice I never liked the Xbox since it's debut. Now my son happens to be an Xbox fanboy now you have no idea how annoying he can be with his rants why Xbox 360 is better than PS3 I'm tired paying the $50 annual fee for XBL and not to mention he is on 3rd Xbox360 due the dreaded RRoD I would like to see the expression in his face If and a BIG IF... Sony decide to licence BD to MS.

  37. markwesker

    • 2:44pm GMT - March 7th, 2008

    no it will only play blu ray films so it sounds like anouther add on plus with the extra revenue sony will get they can use it to cut the price of there ps3 even more so it probly be cheaper than a cardboard box 360

  38. frank_magnet | Frank_Magnt

    • 2:45pm GMT - March 7th, 2008

    Think its a bad decision by Sony!

  39. smatt584

    • 2:47pm GMT - March 7th, 2008

    I fail to see this as a problem, sure Sony would lose BR exclusivity, but they make money off of it and Xbox loses the edge in pricing. It's win-win!

  40. pirulee | evoPiru

    • 2:52pm GMT - March 7th, 2008


    "We've already been working on, for example, in Windows, device driver support for Blu-ray drives and the like, and I think the world moves on. Toshiba has moved on. We've moved on, and we'll support Blu-ray in ways that make sense."

     

    Doesn't said 360, it said WINDOWS.

  41. Deldwen | Deldwen1

    • 2:52pm GMT - March 7th, 2008

    dont do it sony let them die!!!!! if u let them have it then the 360 will live and breathe!!!!! JUST END IT AND DONT LET THEM HAVE ANY HD ANYTHING!

  42. Die-romantic | Demon_King

    • 3:01pm GMT - March 7th, 2008

    F/uck you sony now ps3 going to lose the console war ya f/acking Lumb@j$ Stan Glasgow Sonys f/ucked up now Ken Kutaragi left Phil harrison left and now Blu-ray is going to Micro$oft sh!tboxs F/uck this im getting a Sega

  43. AZURA-DRAGON | Azura-Dragon

    • 3:26pm GMT - March 7th, 2008

    i think sony will do something called BLU-RAY HIGH SPEED i saw it

  44. Gero | Gregero

    • 3:29pm GMT - March 7th, 2008

    Wooooh! Go Sony!! Make them your b!tch! Yeah!

  45. duomtl | duomtl

    • 3:46pm GMT - March 7th, 2008

    ok no mater what if they do this it will only ever play movies, because they can't do games since not everyone will have it and people will get extremely pissed

  46. ScaR

    • 3:52pm GMT - March 7th, 2008

    its a double edged sword. however due to ps3 manufacturing price they are losing a lot of money not to mention the price drops. however, generating revenue through 360s might help them with their profit loss.

  47. starhead | starhead

    • 4:05pm GMT - March 7th, 2008

    I think Sony shouldn't let them even though they will get money for. They say ha ha BIG mistake. It's like what butchyz said their aiding the enemy.

  48. Jono-PK | Jono_2007

    • 4:25pm GMT - March 7th, 2008

    lol the microsoft people are F;gs!

  49. static-x | liljonatl (us) liljonatl2 (jpn)

    • 4:25pm GMT - March 7th, 2008

    ok so xbox can play blu ray movies but not beable to play bd games so there is still a plus for sony unless microsoft  put a hard wird one in to the xbox which would be a whole new system i thank you could see a bunch of fans getting upset over this on the xbox side. but we will have to see how microsoft plays the cards they were delt.

  50. Psydistix

    • 4:28pm GMT - March 7th, 2008

    Microsoft has a larger problem on their hands. It is known as DRM Protection for those Digital Downloads they are trying to push so hard.

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