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Sony is not going to block Microsoft from adopting the Blu-Ray format, and they quite simply can't.

They're not going to because as a member of the BDA they want to get the format into even more homes. And they're not going to because as Sony they really need all the royalties they can get.

And they quite simply can't because the BDA wouldn't approve a clause that blocked adoption rate of the format, and you know nasty lawsuits.

In the end Sony and Microsoft are business that have long had dealings with each other.

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As far as I'm aware the disc printing/burning, case creation and booklet printing are pretty much all done by external "factories" for all publishers.