As it was expected, Microsoft has once quashed rumors that the comapany will ship a Blu-ray drive in or for the Xbox 360.

The latest speculation was released by DigiTimes.com, which quoted industry sources who claimed that LiteOn IT had started production of the drives.

Microsoft has reportedly said "Lite-On is not manufacturing Blu-ray drives for the Xbox 360. 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."