Digitimes, "sources" have confirmed that Lite-On will be making a Blu-ray drive from Microsoft's Xbox 360 console, although there are a lot of discrepancies in the story that make you wonder how reliable of a source this comes from.
First of all, it states that Lite-On will start shipping the drives to Microsoft some time in the second half of this year, which might well be true, but then it goes on to say that the drives are for the next generation Xbox 360 console, which sounds very dubious.
It goes on to say that the next generation Xbox 360 console will use a 170W power supply instead of the current 210W model. This suggests to us that they're talking about the die shrunkversion, which is expected to come out later this year, rather than a next generation console.
However, we still doubt that Microsoft will incorporate a Blu-ray drive into its console, as the additional cost would be too high due to the current price difference between DVD and Blu-ray drives.