News

Microsoft building Blu-ray Xbox 360

posted on 02 May 2008 07:38

360 degree turn, if the report is true

Microsoft has contracted for Blu-ray-equipped Xbox 360 game consoles to be built, according to a Chinese report.

The Chinese-language Economic Daily News paper notes that an OEM subsidiary of Asustek computer, Pegatron Technology, has been given the orders from Microsoft to manufacture Xbox 360s with Blu-ray drives.

Microsoft has been firm and consistent in its denials that the Xbox will be given a Blu-ray drive to replace the now defunct HD-DVD drive, given Toshiba's removal of HD-DVD from the market. On-line downloads are its preferred high-definition movie and game delivery medium.

This report, if true, represents a 360 degree turn by Microsoft. Many people see that Microsoft would not want to suffer a slow down in Xbox 360 sales while customers waited for Blu-ray Xbox' to appear.

Pegatron, a contract manufacturer, is an HP supplier.

Meanwhile Blu-ray player sales are not taking off, with the failure attributed to high player prices and lack of a perceived strong enough increase in picture quality compared to DVD movies.