According to Digitimes, Lite-On is developing built-in Blu-ray Disc-(BD) ROM drives for the Xbox 360. Lite-On declined to comment, citing client confidentiality.
Lite-On’s shipments of the BD ROMs will start in the second half of 2008. Lite-On is currently one of the suppliers of Xbox 360 DVD-ROM drives.
Update: Microsoft has denied this. But then again, they may not want to let the cat out of the bag just yet. So as always, should anything develop, we’ll keep you updated.