Microsoft has apparently moved to deny claims made by Asian manufacturing news resources that it is planning to put a Blu-ray disc drive in its Xbox 360 console.

The rumours had suggested that the software giant had commissioned Lite-On to produce the Blu-ray element for a future version of the console, which it would sell at a loss in order to better compete with Sony's PS3.

Without quoting exact contacts, Electronista reports that in the States Microsoft has "flatly rejected" the assertions and said that "For our customers who want a premium movie experience we offer the largest library of on-demand HD content available".

This is becoming a bit of a saga in the tech world, Sony president Stan Glasgow had previously revealed the two companies were in talks over Blu-ray, which was later denied and Microsoft CEO Steve Ballmer has said they would support Blu-ray in a ways which made sense.

There is no doubt more to come, and we'll keep you informed...