Microsoft has insisted that Lite-On will not be making Blu-ray drives for its Xbox 360, despite widespread internet rumours to the contrary.

DigiTimes, citing industry sources, insisted that Lite-On are going to produce drives that will replace the Xbox 360's current internal DVD drive.

And while DigiTimes continues with its runaway speculation regarding what it considers to be this Christmas’ price war between the Blu-ray Xbox 360 and PS3, here’s the statement just in from Microsoft to scupper their rumour-mongering:

“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 games available.

Play back DVDs in high definition

“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.“

Jon Hicks, editor on Official Xbox 360 told us earlier: "I'm not surprised. If they were going to announce something like this then they would certainly not do it right now. As I've said in the past, they haven't ruled out Blu-ray on 360, and if we ever were to see anything, then I would imagine it would be announced much nearer to Christmas."