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According to XBitLabs (linked above), Toshiba-Samsung Storage Technology Corp. has been contracted to manufacture external Blu-ray disc drives for Microsoft XBox 360 game consoles.

Toshiba-Samsung Storage Technology Corporation is a joint venture between Samsung Electronics and Toshiba Corporation. The Blu-ray disc drives are rumored to cost in the $100-$150 range.

To quote: It is still unclear when exactly Microsoft plans to release its external Blu-ray solution for Xbox 360. Hypothetically, the company may launch it slightly ahead of the holiday season in an attempt to steal an advantage from the PlayStation 3. B

ut since sales of Blu-ray are still on a low level, the software giant may decide to postpone the unveiling till Consumer Electronics Show early next year in order to get the most attention of the media with new device.

Microsoft and TSST did not comment on the news story. More PlayStation 3 News...