Asus Subsidiary Making Blu-ray Xbox 360

Despite repeated bashing and smashings, the Xbox 360 Blu-ray rumor is eternal like the sun god. Taiwanese rag Economic Times is reporting that Pegatron Technology—an Asus subsidiary, not a Decepticon as McWhertor points out—has received an order from Microsoft for a Blu-ray-equipped Xbox 360, due to be manufactured soon and shipped in time for the holidays. Weeks ago, Digitimes said Lite-On was going to make 'em. Let's assess.

Okay, first, Ballmer has said Microsoft will "support Blu-ray in ways that make sense," and even the hardest blow wasn't a straight-up denial it would never happen. It's still pretty unlikely, but let's say there's a small window of chance. Would it make sense?

If they could do it for cheap enough, it might help extend the life of the Xbox 360 and negate one of the major advantages the PS3 has now—it's one of the cheapest (and best) delivery vehicles for the HD format victor, and that could be a crucial edge going into the holidays, since it's the first holiday season people can feel safe in picking up Blu-ray. HDTVs will be cheaper than ever to boot, so people will want pretty pictures plastered on them. So it does make a certain kind of sense (also why they wouldn't bother with a new attachment but go with a whole new box). But, we're not holding our breath for a Blu 360, by any means. If you are, please buy a salt lick to keep you company, 'cause it might get lonely. [Economic Daily News via Kotaku]