Starturtle writes "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. However, Microsoft came out and denied all rumors, stating that they were not exploring any kind of Blu-ray add-on or in talks with Sony about integrating Blu-ray into the Xbox experience. 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."