This is very interesting…..very interesting indeed. Microsoft and Toshiba have worked close for the longest now…..but maybe not much longer. So far this is a rumor and is intended to be taken as one. Take it as you will though.

Marketing bigwig Jeff Bell says Microsoft has been talking to Blu-ray about the possibility of a partnership all along.

Warner Bros.'s recent decision to exclusively pick the Sony-championed disc format, and did not rule out the possibility MS will adopt it at some point in the future.

"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.

"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.