Microsoft has denied rumors that Taiwan-based hardware manufacturer Lite-On is supplying a Blu-ray drive for use in a future Xbox 360 hardware revision, TechRadar reports.

The rumors were initially sparked by reports from DigiTimes, which, citing industry sources, claimed that Lite-On was supplying Microsoft with Blu-ray drives for the Xbox 360. Microsoft quickly responded to the speculation, issuing a statement that denied the claims.

"Lite-On is not manufacturing Blu-ray drives for Xbox 360," a company spokesperson said. "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.

"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," the representative added.

The software giant has repeatedly dismissed rumors of Blu-ray functionality following the HD DVD format's defeat, with heavyweight HD DVD supporters pulling out and Microsoft itself axing the HD DVD player add-on for its Xbox 360.