A report from Taiwanese news source Economic Daily News says that Pegatron Technology—a recently formed subsidiary of Asus that shouldn't be confused with the Decepticon leader—has received an order from Microsoft to manufacture a Blu-ray equipped model of the Xbox 360.

According to the report, Pegatron says that it plans to begin production on the HD version of the Xbox 360 soon, with plans to ship within the next six months, aiming for a pre-holiday release.

It won't be the first time we've heard talk about Microsoft gloming on to the format, as the DigiTimes recently pegged manufacturer Lite-On as a Xbox 360 Blu-ray drive maker and Sony executives hinted that its competitor was feeling Blu to the Financial Times. MS CEO Steve Ballmer recently went on record about the move away from HD-DVD, saying the company will "support Blu-ray in ways that make sense."

Microsoft PR, of course, continues to beat the digital distribution drum and deny the existence of a BRD playing 360. We would of course be shocked to learn that something slipped from the airtight walls of Microsoft early, so we're sticking with unconfirmed rumor at this point.

The EDN report also mentions that a price cut for the Core (Arcade) version of the 360 is planned, but doesn't provide further details on timing or adjustments.

News-Source: http://kotaku.com"