TechRadar is reporting that DigiTimes got it wrong with their article about Lite-On producing Blu-Ray drives for Xbox. A Microsoft rep had this to say
“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.
Who to believe...Well for now I think we can chalk the DigiTimes supposition up to rumor but something tells me that they probably are not that far off the mark. MS still has a bunch of HD-DVD inventory out there and they are just not ready to discuss this. Clearly they need to make a move sometime or the PS3 will continue to erode the sales of Xboxes.

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