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Microsoft not backing away from HD DVD

Even with the apparent shift in power with Warner Bros. going Blu-ray Disc exclusive this June, Microsoft, one of the founding supporters of HD DVD, reiterated its faith in the high-definition optical format.

Speaking to 1up during CES 2008, Microsoft corporate VP Jeff Bell said regarding the Warner announcement, “We were disappointed with the announcement. It has a consequence. I will tell you that we are committed to HD-DVD and still have some great partners -- Universal, Paramount, DreamWorks -- these are great participants in the format. We have sold very well the HD-DVD accessory.”

While Microsoft has been very forthcoming with Xbox 360 console sales figures, the company rarely mentions the sales of its HD DVD add-on accessory. According to NPD Group’s report released in November 2007, the Xbox 360 HD DVD add-on drive accessory has sold a collective 269,000 units in the U.S., making for a 3.4 percent attach rate with the console.

“We did make a specific choice; we did not impose technology upon our consumers. We would like choice to be our guiding principle, and it has worked for us. We're not demanding that people choose a format, but rather, we're with DVD in the Xbox 360. Satisfaction with DVDs, by the way, is like 96%, at least in the States,” added Bell. “So, we continue to give the alternative in HD-DVD, we have downloadable movies and television shows on Xbox Live Marketplace, Media Center Extender is available and as we just announced, IPTV will be brought onto the Xbox 360, first with British Telecomm in 2008 for consumers. So, there's more than one choice to watch movies and TV shows.”

One other alternative for high-definition movies is Blu-ray Disc – an option that is not available on Xbox 360 users, though not an avenue that Microsoft has avoided.

“You know, interestingly, we have a long history of partnership with Sony. Obviously, they run our software on their personal computers and other devices, so we have a 'coopetition' -- a word I learned at Microsoft when I joined,” Bell said, before mentioning Microsoft’s contact with Blu-ray Disc. “We've been talking to Blu-ray all along because we have the best piece of software in the business, called HDi. It is the backbone that powers interactivity in HD-DVD and we have that available to potentially partner with others.”

Blu-ray Disc currently utilizes BD Java as its backbone for interactive features, whereas HDi is the foundation for HD DVD. Despite its hopes that Blu-ray Disc would incorporate HDi, Microsoft doesn’t appear to have any plans to bring in Blu-ray Disc just yet.

“You never say never,” said Bell. “I think we'd like to see how things evolve. Our commitment, however, to HD-DVD is profound and consistent, and we have done very, very well in term of our accessory sales. We have 400 HD-DVD movies from great studios available. It's a long time between now and June.”



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Timliness?
By NicePants42 on 1/30/2008 10:17:48 AM , Rating: 4
CES ended on January 10th.

You yourself have commented on Toshiba's new marketing strategy since then:
http://www.dailytech.com/Toshibas+New+Angle+Our+HD...
Shifting the focus to every feature EXCEPT the ability to play HD-DVD doesn't exactly inspire confidence in the format.

Since the 10th, Gartner also commented:
http://www.dailytech.com/Gartner+Declares+HD+DVD+D...
There were some real zingers in that article.

Even if you think that Bell would make identical comments today regarding the strength of their HD-DVD partnership, his emphasis on consumer choice, his eagerness to incorporate HDi with Blu-ray, and statements like "I think we'd like to see how things evolve" should help to clue people in that Microsoft is actively looking to dump HD-DVD.




RE: Timliness?
By Master Kenobi (blog) on 1/30/2008 10:26:08 AM , Rating: 5
I think your reading into the PR spin a bit too much. Microsoft, make no mistake, would like nothing better than to see both formats crumble and switch to content on demand. Apple is betting on a similar route, likely the reason we have yet to see Apple adopt either player in their PC's.


RE: Timliness?
By Mitch101 on 1/30/2008 11:01:21 AM , Rating: 2
We heard a while back of a rumor that would absolutely destroy everything out there that Microsoft is working on. We have seen a proof of concept so we know it exists and its a simple concept taken to a whole new level. Its so simple you will be angry you didn't think of it.

We cant say much about it because well I'm sure the poo would hit the fan but we might see it the end of 2009 with the 360's replacement. Oh no he did not just say the 360's replacement is coming in 2009 did he? DX11 with physics ***cough***?

While everyone is thinking Microsoft reason for the war is download service that just a fraction of what might be coming. If I had to give it a name it would be Shock and Awe but that might be an understatement. Start saving your money 2009-2010 might have some surprises.


RE: Timliness?
By sweetsauce on 1/30/2008 11:26:13 AM , Rating: 2
Honestly 2009-2010 would be good for a new system. I think the age of 6-10 year console cycles is over and way overdue. A console that costs as much as a top of the line graphics card with near graphics potential every 4 years is more than getting your money's worth. I've personally owned more than 15 360 games, some i've sold, some i still play, so its more than made the 360 worthwhile for me.


RE: Timliness?
By othercents on 1/30/2008 12:39:58 PM , Rating: 2
quote:
Honestly 2009-2010 would be good for a new system

Why does it have to be a new console? I think the Xbox360 is a decent platform to purchase downloadable content and the platform has not been maxed out yet. What Microsoft needs is a mainstream movie/tv player that is cost effective for everyone to access Xbox Live Marketplace. The pricing or advertising in the Marketplace might more than pay for the cost of giving away the players.

I don't forsee a new console until 2012, but I do expect Microsoft to integrate the Xbox Live Marketplace across all platforms (IE PC and Mac) and introduce a new video player to download content.

Other


RE: Timliness?
By erikejw on 1/30/2008 11:58:27 AM , Rating: 5
quote:
We heard a while back of a rumor that would absolutely destroy everything out there that Microsoft is working on.


It's the XBOX360 you are talking about.
You can barely touch it and it selfdestructs ;)


RE: Timliness?
By deeznuts on 1/30/2008 12:58:30 PM , Rating: 4
quote:
I think your reading into the PR spin a bit too much. Microsoft, make no mistake, would like nothing better than to see both formats crumble and switch to content on demand.
They should be careful what they wish for ... unless they became an ISP. ISP's are the gatekeepers, and they want to charge us more. Much more. Ask Time Warner and Comcast. And video on demand from your cable provider/isp doesn't really benefit MS too much now.

Content on Demand ain't coming for a while. A long while. People are stubborn. And for now, they like their physical media.


RE: Timliness?
By NicePants42 on 1/30/2008 1:33:04 PM , Rating: 5
quote:
Microsoft, make no mistake, would like nothing better than to see both formats crumble and switch to content on demand.
That's what I was getting at. I didn't mean to infer that Microsoft was actively trying to jump into bed with Blu-ray.

What struck me was that Dailytech seems to be posting articles in a back-and-forth kind of way with regard to the 'format war', and considering that these comments were made on or before January 10th, publishing this article on the 30th seems a little questionable.

Here's what DT has published since the 24th:
1/24: Blu-ray Disc Takes 93 Percent of Hardware Sales During Week 2
1/25: HD DVD Boss: The Format War is Far From Over
1/26: Sony Develops Smaller, Cheaper Blu-ray Disc Laser Unit
1/28: High-Def Sales Split Skewed by Free Blu-ray Disc Players
1/28: Gartner Declares HD DVD Dead, Woolworths Backs Blu-ray
1/30: Microsoft Still Behind HD DVD, Door Open for Blu-ray Disc

If I'm 'reading into the PR spin a bit too much' it's only because Dailytech is spewing PR from a different orifice every day with regard to this issue. Sure, it's a hot topic, but then why are these three-week-old comments being published today like they're news (or even slightly surprising)? Did the PR bucket run dry?


RE: Timliness?
By OPR8R on 1/30/2008 2:03:43 PM , Rating: 3
I think there are two ways you can choose to look at it.

1) Just look at the amount of comments that are posted in response to these stories. Perhaps DT is catering the their readers. DT must be doing something right if everyday there are hundreds of comments.

or

2) DT are visit/hit-count whores (don't know what the correct marketing jargon is) and posts stories on controversial topics to incite flame wars, and thusly drive up visit/hit-count numbers. DT has to pay the bills, I guess.


Let there be competition
By crystal clear on 1/30/2008 5:27:07 PM , Rating: 1
quote:
Microsoft Still Behind HD DVD, Door Open for Blu-ray Disc


The title is misleading-"Door Open for blu-ray"

However much M.S. employees have made such statements(wishful thinking),the official policy stays firm-
"NO Blu Ray".

Let there be competition-its good for all of us !

Say for example-HDDVD is dead as many here would like to see-they chant Victory & death !

Blu Ray becomes the only format available,then Blu Ray raises their prices from HARDWARE to CONTENTS .

Then what do you-what guarrante you have they will not raise their prices in the future !

Competition bring competitive prices & YOU the buyers benefits & not the promoters of the format.

Its just too early to decide the future of the formats-let the demand & supply forces do their work.

Commentators should be more concerned with themselves,rather than bother about the format promoters.
The promoters want profits whilst we the buyers want low prices !

Reading the comments here & in the past-SOME of the commentators are clearly paid by the Blu Ray promoters to post such High Profile comments-Death & Victory etc etc.

Its crystal clear people are being paid to do the job-posting comments for the Blu Ray promoters !




RE: Let there be competition
By TerranMagistrate on 1/30/2008 7:56:31 PM , Rating: 2
Yea, it's all one massive conspiracy...

But seriously, whether it be HD-DVD or Blu-Ray: let there be a winner already. The longer this "war" drags on, the worse it is for us consumers.


RE: Let there be competition
By crystal clear on 1/31/2008 4:54:20 AM , Rating: 3
No you stand to gain in all these format wars-

Buy a HDTV from the Blue Ray promoter(Sony etc) get a B.R. player FREE.

Toshiba cuts prices drastically & more such attractive offers to follow.

They all want you the buyer !

Let there be a price war ! you gain in the bargain - see
Intel/AMD price war !

Support & promote the buyers & not the format promoters !


RE: Let there be competition
By 777 on 1/30/2008 10:31:16 PM , Rating: 2
Blu Ray becomes the only format available,then Blu Ray raises their prices from HARDWARE to CONTENTS .

Not true! Mass production and mass purchase is what generally always brings prices down for consumers.

Competition bring competitive prices & YOU the buyers benefits & not the promoters of the format.

Not entirely true. Was there any competition for the DVD format? No. Mass production brought prices dirt cheap for players and content, not two competing formats.

Its crystal clear people are being paid to do the job-posting comments for the Blu Ray promoters !

I'm not getting any kick back here, go check out blu-ray.com and see for yourself. Woolworths support Blu-ray exclusively, FS Film goes Blu-ray exclusive, Sonic Scenarist to be Blu-ray exclusive and National Geographic goes Blu-ray exclusive. Clearly these people see the writing on the wall. It is all about the almighty dollar period! If companies think Blu is where the bucks are than that's where their going to put their money. It's over HD-DVD, can we please just move on.


RE: Let there be competition
By crystal clear on 1/31/2008 4:44:20 AM , Rating: 2
quote:
Not true! Mass production and mass purchase is what generally always brings prices down for consumers.


NO ! Competition brings prices down & competition brings about a price war, then the prices are even lower !
example-Intel/AMD

I anticipated a response to my comment as all comments that do not support Blue Ray are immidiately responded to.

The public relation teams work hard & a quick response is made.
As I said in my comment-

what guarrante you have they will not raise their prices in the future !


Do you speak for the B.R. promoters or the content providers or the hardware manufacturers ? that you respond with "not true".

You assume prices will come down by your theory,when infact the realities/experience of marketing say "competition brings about lower prices & better performances.

The formula of P&P price & performance

Mass production & mass purchases are intelinked-No mass productions if there are No mass purchases-NO guarrantee there will be mass purchases-you only assume it will be that.
You cannot accurately predict consumer behaviour & responses or choices.
Example-Nobody did/could or would have predicted the PS2 will become a huge seller even today.

You take it for granted that the only format available will be Blue Ray, & everybody will just shut up & pay up.

No the buyers will respond by opting for cheaper solution/s there are & will be plenty around.

Prices are cut or kept low when there is a price war or stiff compettition between 2 competing products-you compete in price & quality

All those content producers/sellers/resellers etc go Blu Ray exclusive for a something in return, "that you could call it subsidies/funding"
Just remember its big money at play-huge sums pass hands for that B.R.exclusive only label.As you say

It is all about the almighty dollar period!

All this money is ultimately recovered through higher prices -its an investemnt that has to be recovered ultimately by passing it on to the buyers,via higher prices !

You say Clearly these people see the writing on the wall.

No they see $$$$$ ! in funds & subsidies they recieve for being B.R. exclusive.

Your assumptions are incorrect & faulty,you seem to heavily promote the B.R. format with promoters in mind & NOT the BUYERS !

you say It's over HD-DVD, can we please just move on.

The format war has just started & you claim its all over ...
just like the war in IRAQ which was supposed to be over long time ago or Afganistan.... still going on with no end in sight.

Buyers are not stupid they really dont get fooled by this -
they want it cheap or even better free they are slow adopters of technology,they are not in a big hurry to buy.

Marketing & public relations are two different things-you have to be in the marketing business to know "what buyers want"

CHEAP !

I promote the buyer !

My comments are carefully researched & appropriately worded & composed.
So read carefully before responding.......


RE: Let there be competition
By crystal clear on 1/31/2008 5:16:32 AM , Rating: 2
By the way you have only 2 comments to your credit on this site !

You are new here ! all focused on It's over HD-DVD, can we please just move on.


RE: Let there be competition
By 777 on 1/31/2008 9:45:03 PM , Rating: 2
quote:
By the way you have only 2 comments to your credit on this site ! You are new here ! all focused on It's over HD-DVD, can we please just move on.


The fact you felt it was necessary to point this out in a second post seems to me you can't handle someone disputing your points. Fact is everything I stated does hold water. You also missed the fact that DVD exploded when it was the only choice consumers had and mass produced prices went down. People don't want to waste money on a cheap product they can't watch anything on. If all those who are producing the content all favored HD-DVD great, but there not.

Also the fact that both Toshiba and Microsoft felt they needed to buy out Paramount for 150 million says they were desperate. I would also like to see your proof that all these choosing Blu-ray are getting kick backs. I have worked for two of the companies that are Blu-ray exclusive and they recieve no kick backs for supporting this format. In fact one company has a heck of time getting support from Sony to make their content work well on Blu-ray.

Take a look at Japan, they are favoring Blu-ray 93% to 6% HD-DVD, I don't care which format, but two formats isn't any good for the consumer in this type of medium. This isn't like game consoles, all the people I deal with in relation to my business ask me all the time which format to go with and in the past I have said to wait it out. Two formats isn't benefiting anyone! It would only if you COULD buy a $100 combo player - NOT GONNA HAPPEN!


RE: Let there be competition
By crystal clear on 2/1/2008 4:07:54 AM , Rating: 2
quote:
The fact you felt it was necessary to point this out in a second post seems to me you can't handle someone disputing your points.


NO my friend I on the contrary like discussing any topic (tech related ofcourse)with anybody on the site.
Thats the great part of posting your comment here,you state your views/opinions, that starts a process of arguments & counter argument/s back & forth.

Just as its human to err....its human to disagree....

Thats the fun in communicating -a form of debate ..for & against.

I certainly dont expect you or anybody else to agree with all what I have to say-I post my views/opinions crystal clear with express purpose of reading a counter argument...

I can handle anybody when it comes to a decent/intelligent discusion/s,the only time I refuse/refrain to respond if the commentators becomes abusive or insulting.
No time for Hot heads & fanatics etc.

Just as I dispute your point of view -you do the same ...& I like it & expect it....

The purpose of checking your past comments was to verify the pattern of your commenting & contents-thats all ! & as I said "by the way".Nothing more than that.

I will post a response the the other half of your comments soon-got some urgent calls to make & will be back.


RE: Let there be competition
By 777 on 2/1/2008 11:15:28 PM , Rating: 2
quote:
Just as I dispute your point of view -you do the same ...& I like it & expect it....


Good to hear. From a business standpoint I admit I am biased towards Blu. I saw the specs from the beginning when Sony was developing the format and always felt in the long run was the better format. It has been built new from the ground up, HD-DVD was not.

On the consumer side IF I could buy a $100 combo player MAYBE I would jump in, but I am disappointed there is a lot of content I cannot watch in Hi-def without owning two players. Which I simply will not do. As Divx fell by the wayside to DVD, I would like to see one format dominate the market so I can watch anything I want in Hi-def. As I see it, with one format it will bring the competition you point out, competition from all companies to put out the best possible player and in turn drive prices down by mass producing both the players and content. Equalling unconfused happy consumers who can watch anything they want on their Hi-def player.

Most consumers I deal with could give a rip about marketing B.S., they want cheap, rock solid & a easy to use device to enjoy their entertainment, not confusion over which format is better and not wanting to waste their time and money on a format that won't play say "Transformers". I just want to see someone get this right and make the consumer happy.