Blu-ray on Xbox 360: it’s a rumor that just won’t die, no matter what. According to a report from technology news site X-bit Labs, Toshiba has been contracted by Microsoft to produce external Blu-ray disc drives for the Xbox 360.

While the exact specs of the drive are unknown at this point, expect it to fall between the range of $100-150 dollars, assuming this report is factually accurate. That’s around the price the now-defunct HD-DVD add-on peripheral initially launched at.

Maintaining its stance on rumors, Microsoft could neither confirm nor deny the report, simply issuing a “no comment.”

My take: Blu-ray will arrive on 360 eventually. Microsoft needs to appeal to the growing market of folks that want to watch movies in high-definition on their console and with HD-DVD long gone, introducing a Blu-ray player is the only way they’ll be able to do so.

Microsoft Preps External Blu-Ray Disc Optical Drive for Xbox 360 [X-bit Labs]

Read more: Microsoft’s bloggers dispute internal HD-DVD claim, Round 2: Sony, Microsoft Discuss Blu-ray For Xbox 360, Update: Microsoft’s Xbox 360 May Embrace Blu-ray, Source: Xbox 360 Ultimate Not So Likely, Peter Moore: Y’know, things break