One of the better rumors out there among the incessant HD DVD/Blu-ray arguments is that Microsoft has been thinking of working Blu-ray into the Xbox 360. I never expected this to happen, but it does seem that the two companies have been in talks.

Microsoft exec Jeff Bell says Microsoft has been talking to Blu-ray about the possibility of some kind of partnership. 

"We've been talking to Blu-ray all along because we have the best piece of software in the business, called HDi. It is the backbone that powers interactivity in HD-DVD and we have that available to potentially partner with others," Jeff Bell told 1UP.

Bell also points to another sort of partnership between Microsoft and Sony. He uses the term "coopetition" to describe how Sony uses Windows software on their computers.

As far as the future possibility of an Xbox 360 Blu-ray player goes, Bell does not rule anything out. 

"You never say never. I think we'd like to see how things evolve. Our commitment, however, to HD-DVD is profound and consistent, and we have done very, very well in term of our accessory sales."

I think there's always the possibility of the two working together, but I don't think we'll ever see Blu-ray in the Xbox 360. What do you think? 

[Via eurogamer -- Thanks, DF]