Blu-ray drive in development for Xbox 360

Microsoft’s Xbox division has already denied it’s talking to Sony about Blu-ray, but that hasn’t stopped the rumours. It’s now claimed that Taiwanese outfit Lite-On IT is developing a Blu-ray drive for the console.

According to a DigiTimes report, unnamed industry sources have claimed that Lite-On is developing a built-in Blu-ray drive for the Xbox 360. The first shipment of drives is expected to reach Microsoft in the second half of 2008.

The source claimed that, in order to incorporate a Blu-ray drive, a next generation Xbox 360 will be developed by Microsoft. Apparently the redesigned console will have a lower wattage power supply, helping to reduce production costs and the gaming system’s size.

Although Microsoft hasn’t ruled out the possibility of an Xbox 360 Blu-ray drive, the source also claimed that Microsoft has now decided to adopt the format following Toshiba’s decision to dump HD DVD. Continued production of the Xbox 360’s HD DVD add-on drive was officially canned by Microsoft last month.

Gamers worldwide will be hoping the source’s information is accurate, because if it’s not, then it’s just another cruel April Fool’s joke.