360 equipped with Blu-ray?

In the wake of Toshiba's exit from the high-definition video playback format wars, Microsoft was quick to assume an aloof attitude toward the demise of its chosen HD standard, saying that it would ultimately be games that would determine the winner in the console arena. Following conflicting reports from Microsoft execs saying it was both unwilling to remove options of a BD-equipped Xbox 360 from the table and that no discussions of such an eventuality with the Blu-ray Association were occurring, the hardware maker further distanced itself from the external HD-player spectrum altogether, saying that HD video distributed through the Xbox Live Marketplace was its primary focus.

With the above conversation playing out over the course of February and March, speculation of a Blu-ray-equipped Xbox 360 returns today like a sour April Fools' Day prank. Taiwanese IT news outlet Digitimes reports industry sources as saying that Taiwan-based Lite-On has begun manufacturing Blu-ray Disc drives for use in the Xbox 360. According to Digitimes, the addition of a Blu-ray player to Microsoft's console may be part of a larger redesign slated to be rolled out later this year.