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After months of rumors and denials, the XBOX 360 with a Blu-ray disc drive is due to be manufactured soon and shipped in Q3 of 2008. Pegatron Technology, an OEM subsidiary of Asustek Computer, is reported to have received the winning order from Microsoft for a Blu-ray equipped XBOX 360.

Earlier reports cited Lite-On as the company with the privilege of building the new console for Microsoft. Lite-On is also currently one of the suppliers of the internal DVD drive fro the XBOX 360.

One of the strong points for Sony’s Playstation 3 has been the integrated Blu-ray player. The PS3 had the ability to draw both gamers and audio/video enthusiast, and this was proving to be a major advantage over its XBOX rival. It is estimated that 85% of Blu-ray players in use are PS3s. Microsoft chief executive Steve Ballmer had admitted that Microsoft had been working on support for Blu-ray under Windows during this year’s Mix08 conference. Rumors began to swirl and many began to expect Microsoft to announce a Blu-ray peripheral for the XBOX 360.

View: Full Article @ Toms Hardware