Xbox 360 Blu-ray Drive in Development?

"Quoting inside sources, DigiTimes yesterday reported on a story that the Taiwan-based company Lite-On is currently in development of an internal Blu-ray drive for the Xbox 360 game console. The same sources state that shipments of the drive will begin in the second half of 2008 along with the "next-generation of Xbox 360 game consoles," fueling speculation that a console more powerful than Xbox 360's currently high-end model, the Elite, could be on the way as early as this holiday.

Microsoft has made conflicting statements regarding their Blu-ray intentions over the past several months and have neither confirmed nor denied DigiTimes' claims. Stay tuned to IGN DVD for more."

Source