That's according to an article by the web site, GamePro.
Economic Daily News reported last week that Pegatron Technology has received an order from Microsoft to manufacture XBox 360 consoles with Blu-ray players inside. The report said the new consoles would be shipped in the third quarter.
Microsoft was a strong supporter of HD DVD -- Blu-ray's rival in the high-def disc format war -- and even sold a HD DVD player attachment for the box.
However, since Toshiba announced in February that it was pulling the plug on HD DVD, occasional rumors have surfaced that Microsoft would put a Blu-ray player in a future XBox console. And Microsoft has denied each rumor, including, now, the most recent one.
"As we have stated, we have no plans to introduce a Blu-ray drive for Xbox 360," a Microsoft official said in an email to GamePro on Monday. "Games are what drive consumers to purchase game consoles, and we remain focused on providing the largest library of blockbuster games available."
Sales of the Sony-owned Play Station 3 has risen since Toshiba's exit from the HD DVD business. The PS3 has a Blu-ray player inside.
Commentary:

It's not surprising that Microsoft is denying the rumor, but the denial is not credible. Since the advent of the high-def format war, Microsoft has issued numerous statements which have been in conflict with each other. For instance:
* For nearly two years, Microsoft said HD DVD would win the format war because of its technological superiority. But in January 2008, Microsoft Chairman Bill Gates suddenly said the company was "actually neutral" in the format war. This statement came after Warner Bros. decided to endorse Blu-ray over HD DVD, which most industry analysts said sealed HD DVD's fate.
* In January 2008, a Microsoft XBox group manager told EETimes that it might consider adding a Blu-ray player if HD DVD pulled out. The company later reversed that by saying the remarks were taken out of context.
* Aaron Greenberg, a different XBox group product manager, told Reuters in March that there were no plans to offer Blu-ray with the XBox and that the companies were not in discussions for a Blu-ray device. But Microsoft CEO Steve Ballmer told an industry conference a few days later that the company would support Blu-ray "in ways that make sense."
* In March 2007, Neil Thompson, Microsoft's European senior regional director, said the XBox could support Blu-ray at some point. “Whatever format wins it is highly likely we will offer a solution," Thompson said in an interview with the BBC. "The only debate is if you want to watch Blu-ray movies and pay the extra money for that feature. We prefer to offer the consumer choice.”
As you can see, Microsoft has been all over the map on this topic, saying what appears to be most convenient and helpful at the time. That doesn't mean with certainty that it will add a Blu-ray player to the XBox 360. But it does mean that the company can not be believed no matter what it says.
At this point, it's wise for Microsoft to deny the Blu-ray rumors. Some people might wait to buy an XBox until the new Blu-ray console is introduced. And Microsoft doesn't want people hesitating about buying an XBox -- particularly now with PS3 sales rising.
So, with Microsoft, it's best to wait and see -- with the word, "see" being the most operative one.
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