Rumors have been circulating that Microsoft will release a Blu-Ray version of the Xbox 360. While a Microsoft executive did say it was possible the company later denied that they were going Blu-Ray.

It was reported in DigiTimes.com that Pegatron Technology, an OEM subsidiary of Asustek, has gotten orders from Microsoft to assemble Xbox 360 units with a Blu-ray Disc drive. It was also revealed that the shipments for the alleged product will be starting by as early as Q3 of this year.

We have no way of confirming these claims since these tidbits of information were allegedly garnered from the Chinese-language Economic Daily News. However, it might not be a bad move to integrate the drive into the Xbox 360 at this point. That said, there's really nothing we can do but wait for an official statement from Microsoft regarding this.