This time rumors come from Taiwan, with LiteOn to receive orders from Microsoft to develop an internal Blu-ray drive for the Xbox 360 game console. Digitimes.com reported today that LiteOn IT is developing built-in Blu-ray Disc ROM drive for Microsoft's next-generation Xbox 360 game console, citing industry sources.

LiteOn's shipments of the BD-ROMs to Microsoft will start in the second half of 2008, according to the report, possibly offering Microsoft the chance to deliver the new Xbox 360 by the next Christmas holiday season.

LiteOn has been one of the Microsoft's the providers of the external HD DVD drive for the Xbox 360. Toshiba's announcement to discontinue HD DVD early this year had immediately fired up speculations about a possible switch in Microsoft's plans to include BD drive in Xbox 360. However, Microsoft's group product manager for Xbox 360 had poured cold water on the speculation saying that Xbox was not in talks with Sony to integrate Blu-ray into the Xbox.