With all the jokes coming up, this one is a bit hard to believe. Digitimes says that an XBOX360 is being made by Lite on IT with an internal BluRay drive!
They say that Microsoft has decided to switch to BluRay because Toshiba has discontinued HD-DVD. But with Microsoft executives saying Non-disc media is the best, I believe all we can do is wait and see.
It further says that Lite-On has already started steady shipments of BD-ROM drives and BD burners.

Lite-On's shipments of the BD ROMs to Microsoft will start in the second half of 2008, the sources added. Lite-On is currently one of the suppliers of Xbox 360-use internal DVD-ROM drives.

Microsoft has decided to switch to BD for its Xbox 360 game consoles after Toshiba announced to discontinue HD DVD, the sources said. The BD-ROM drives that Lite-On is developing for Microsoft are for the next-generation Xbox 360 game consoles, the sources said.

Power supply makers also revealed that while the present Xbox 360 uses a 210-watt power supply, the next-generation game console will use a 170-watt power supply in order to reduce production cost and the size of the device, according to the sources.

StarJet via digitimes.com »