Even if they are giving money to sony it's not like Sony doesn't give money to Microsoft.

I mean what's loaded on every Vaio labtop?

MS tries to make the best of a bad bargain. Well, not so bad, because they earn a lot also from BD, but neither the best, as MS would have earned more from HD-DVD, owning its most widespread interactive contents implementation, while interactive contents for BD are managed by a flavour of Java, that MS fears and hates.
The defeat of BD, moreover, would have been a terrible blow to Sony, and to PS3, nullifying a selling point and a justification for higher price. Anyhow, although about power it's not a victory, about money MS can't complain: BD victory cost Sony money that it will recover later, while MS will profit from BD since the beginning.

true true, quality may not have been good in the past, but now they aren't too bad (failure rates). Of course though, I still think 360 games are of higher quality. I mean, Ps3 releases time and time again get extra bugs in their games. Though this is probably the developers fault.

This.

1) Sony may get a cut but it is improbable that the ammount of money will be particularly large because licencing fees are (generally) not that expensive; consider that you can buy a $15 DVD player that is fully licenced.

2) They are focusing on digital distribution and they still support conventional DVDs ... the addition of Blu-Ray add on only improves the XBox 360 as a media player without forcing anything on a consumer who isn't interested in it.

3) To a certain extent ... I don't expect it to be particularly popular because it is an add-on; even if a remarkably large percentage of XBox 360 owners buy it (25%) it will not be that major of an increase overall. Essentially, until people who are uninterested in gaming become interested in HD movies (and buy stand-alone players) Blu-Ray will remain a niche product.

Give me 2, one for each of my 360s with HD DVD add-ons. I want to add more to the Tower of Power. Not power as in powerful, but power as in consuming lots of power and generating more heat. It won't be as cool as the Genesis, Sega CD, 32X combo, but it's getting there.

sony is going to look like a big idiot now. they kept talking about how blu ray was their biggest advantage during E3, and now blu ray is on xbox 360.

You are right about reliability of new XB360's, but let's not forget that MS already sold almost 20 million consoles with a failure rate more or less higher than industry standard: until new sales and broken units substitution won't have made the number of unreliable units marginal respect to the total, there will still be a perceptibly higher than normal failure rate that will keep on tainting XB360 reputation.

You really don't get it, let me help you: finally MS adopts BD and Sony, that's so eager to push it, shouldn't be happy?

Besides, Sony owned studios produce quite a large share of world BD movies production and Sony owns a consistent part of BD patents portfolio, so it receives a consistent part of forfeit royalties paid to BD consortium by discs and drives producers, increasing BD installed base by some million units, hence discs sales too, will provide Sony a lot of sales and royalties. Yes, MS will receive royalties too, although less than Sony and less than the share it would have received from HD-DVD, but as both Sony and MS will receive a lot of money, while of the two it will be Sony to receive a more favourable power balance in the movie market, Sony hasn't really anything to be displeased.