DigiTimes may stand by their informant who claimed that Lite-On was manufacturing Blu-ray drives for the Xbox 360, but Microsoft—who DigiTimes claimed refused to comment on the rumor, making it all the jucier—has apparently sent a statement to TechRadar denying that Lite-On is producing Blu-ray drives for their console.

"No. 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.

Hmmm. I wonder if DigiTimes will back down now that Microsoft has spoken, or if they'll continue following the mystical BluBox 360 with a different drive manufacturer at the helm.

Microsoft: Lite-On NOT making Blu-ray drive [TechRadar]