Microsoft has previously denied that they were going to put a Blu-Ray drive into the Xbox 360. However, the latest rumors are saying that the company has already placed orders for a Blu-Ray Xbox 360. For more on this, check out the full article.

Microsoft has reportedly been gearing up to produce more Xbox 360 units with the upcoming launch of Bungie's Halo 3. So far, no word has been given on the total number of consoles they are planning to churn out but it looks pretty substantial based on the new info.

"Plans to promote sales of the console the third quarter of this year has Microsoft placing more OEM orders with Lite-On IT for Xbox 360 DVD-ROM drives". This information came from industry sources in Taiwan since the optical disc drive manufacturer was unable to comment due to non-disclosure agreement.

To those who are wondering why news like this will come from Taiwan, take note that Taiwan-based component makers have been supplying Lite-On IT with the components for the drives. So they can tell when Microsoft is increasing production since it's ordering more "raw materials".

We think it's a fair assumption that there will be a very sharp spike in the production of Microsoft but whether it will be sustainable is still unknown.

Last December, we reported that electronic company, Lite-ON IT, will start making HD-DVD players for Microsoft's Xbox 360. The company is a well known Taiwanese maker of DVDs and CDs commonly used by OEM PC manufacturers. If you have already forgotten, current HD-DVD players are supplied by Toshiba.

Fast forward to today, DigiTimes reports that Lite-ON IT had to delay their volume production schedule as it has not yet received product certification from Microsoft, according to industry sources in Taiwan. Both companies declined to comment on this issue.

Shipments of HD-DVDs with the Lite-On IT seal should have started this April. Microsoft tapped Lite-On IT to take care of HD-DVD player OEM production to cut OEM costs and to prepare for the launch of the HD-DVD drives in the Asia Pacific market in Spring 2007. The source also said that Lite-On IT has devoted R&D effort in order to fulfill the deal but Microsoft has very high product standards which are causing the certification process to take longer than originally expected.