Chinese-language newspaper Economic Daily News (EDN) has set the gaming and home video world abuzz with a report that may provide the best indication yet of Xbox 360 and Blu-ray Disc coming together.

The report suggests Pegatron Technology, an OEM subsidiary of Asustek Computer, has secured orders from Microsoft to assemble a new Xbox 360 sku equipped with an internal Blu-ray drive.

The report goes on to suggest the new sku will begin shipping in the third quarter; between July and September.

Rumors of a Blu-ray-equipped Xbox 360 have been around as long as Blu-ray has. Unlike year's past, this upcoming holiday shopping season will only have one high definition home video format sitting on store shelves. Studios have already stated they plan to release far more titles this year than last, so for Microsoft to not embrace Blu-ray before the holiday shopping season starts would be harder to believe than if they do.

Microsoft will likely hold back any official announcement or confirmation on a new Blu-ray Xbox 360 sku until E3 in July.