No matter how many times Microsoft denies it, this rumor just won't go away. A Chinese newspaper reports
ASUS has secured orders to assemble Xbox 360s with Blu-Ray drives so that they may be shipped in the third quarter. We've gone around and around here at Gaming Nexus on whether this would be a good move by Microsoft or not but no matter what this rumor probably won't die until the next iteration of the Xbox is announced or released. I'm sure each time something like this pops up, Chuck dies a little inside.