Just over a month ago, Asian tech sites reported that Lite-On was quietly manufacturing Blu-ray drives for Microsoft's Xbox 360 console. Microsoft took the time to shoot down that particular rumor, but now DigiTimes quotes a Chinese-language paper as saying the software giant has picked a company to produce Xbox 360 consoles with Blu-ray.

According to the Economic Daily News, Pegatron Technology is the lucky company to have secured Microsoft's order. Pegatron will reportedly "assemble Xbox 360 consoles equipped with a Blu-ray Disc (BD)-ROM drive," and shipments of those consoles will kick off in the third quarter of this year.Those who've been keeping track of the developments of the Taiwanese contract manfuacturing industry will know Pegatron Technology is Asus' newly spun-off manufacturing business. As part of a restructuring move announced last year, Asus split its contract manufacturing arms into two entities—Pegatron and Unihan—while keeping its retail business separate.