Ever since HD DVD lost the high-def DVD format war, rumors have kept popping up fairly often that someone is manufacturing a Blu-ray device for the 360. Late last week, Economic Daily News reported that Pegatron Technology, an OEM subsidiary of Asus, had received a direct order from Microsoft to start production on new Xbox 360 consoles with internal Blu-ray drives.

Well, Microsoft just re-confirmed what they have been saying for some time now: there are no plans to introduce a Blu-ray drive for the Xbox 360 and they will "remain focused on providing the largest library of blockbuster games available." I guess as much as I like the idea of a Blu-ray capable 360, we'll have to stop reporting on these rumors and only believe them when we can walk into a store and purchase one.