According to TechRadar.co.uk, a Microsoft rep stated:
“Lite-On is not manufacturing Blu-ray drives for Xbox 360. As we have stated, games are what are driving consumers to purchase game consoles and we remain focused on providing the largest library of blockbuster game available.
“For our customers who want a premium movie experience we offer the largest library of on-demand HD content available and the ability to play back DVDs in high definition.“
The rumours initially kicked off on DigiTimes. Citing industry sources, the site has been suggesting that Lite-On are going to produce drives to replace the Xbox 360's current internal DVD drive.