Redmond (WA) - Microsoft is moving forward with plans to bring Sony's Blu-ray format to its Xbox 360 console, according a report from Chinese newspaper Economic Daily News.

The paper claims that Microsoft has placed orders for an Xbox 360 console with a built-in Blu-ray Disc drive and is expected to ship them in the third quarter of this year.

According to the report, the company made the orders with manufacturing firm Pentagon Technology.  It also goes against earlier suggestions that Microsoft would create a Blu-ray attachment that could be affixed to current Xbox 360 systems.

Microsoft was one of the biggest supporters of the Blu-ray rival HD DVD.  It even helped create the technology used in advanced HD DVD disc features.  

Microsoft also launched an HD DVD peripheral for the Xbox 360, but put the lid on that earlier this year when it was obvious that Blu-ray had won the format war.

Rumors of Blu-ray integration with the Microsoft console have sprung up in rampant form since the death of HD DVD.  However, the software giant has strongly denied all of that speculation.

Similarly, Microsoft has not confirmed the Chinese report, and there were no details on an actual ship date or price point.