The talk has been going back and forth over the last few weeks, each side claiming different things. According to Reuters, Microsoft is absolutely not in talks with Sony over putting a Blu-Ray drive in their popular XBox 360 gaming machine.
"Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience," said Aaron Greenberg, group product manager for Xbox 360.
Greenberg also added that the software giant will continue to invest in XBox Live, an online system where users can rent movies in standard or high-def.
"We're the only console offering digital distribution of entertainment content," Greenberg said.