We just recently posted a report that Lite-On IT had possibly, maybe been contacted by Microsoft to start developing Xbox 360’s with Blu-ray drives. Well, Microsoft has spoken, and their position once again is a defiant ‘No way’, saying: “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.”

You’d think with such an official statement from Microsoft, that the reports would stop huh? Not so, as Digitimes (the site responsible for starting the speculation) doesn’t seem to mind keeping it going, with their recent reports from industry sources in Taiwan about the addition of Blu-ray to 360’s driving up the cost of the system $95-100. This was also shot down dead by a response from Microsoft stating the company doesn’t respond or comment on market rumours.

So who’s lying? I can’t call it, but it sure is getting hard to keep up with all this day-to-day speculation. Will it ever end? Lets keep our fingers crossed and just keep on wishing for that a perfect console to end all this feature-jockeying…