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Microsoft Fueling HD Wars For Own Benefit?

Posted by CmdrTaco on Wed Dec 05, 2007 09:23 AM
from the well-they-ain't-running-a-charity-over-there dept.
DaveyJJ writes "According to Transformers' director Michael Bay, in a story over on Electronista, Microsoft is deliberately feeding into the HD disc format wars to ensure that its own downloads succeed where physical copies fail, he says in a response to a question posed through his official forums. The producer contends that Microsoft is writing "$100 million dollar checks" to movie studios to ensure HD DVD exclusives that hurt the overall market regardless of the format's actual merit or its popularity, preventing any one format from gaining a clear upper hand."
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  • Embrase, Expand, Extinguish. that is not how Microsoft works they get by by making quality products...

    No I couldn't write this with a straight face.
    • Re: (Score:3, Interesting)

      Microsoft is only prolonging this battle between the different formats, to enable more choice for the consumer! Nope, I couldn't write that either with a straight face...
        • Re: (Score:3, Informative)

          There is a big difference between the game format "war" and the movie format "war" according to me.

          Blu-Ray and HD DVD basically offer the same thing, a way to watch movies.

          The different ways of playing games however, offer different means of playing a game. Very different ways of controlling the game for example.

          The different ways of playing games will attract different types of players, and different types of games will be made, some which can be ported to different devices, some that can't.

          Blu
          • Re: (Score:3, Interesting)

            In all fairness video games consoles really haven't offered any difference in game playing until the Wii and DS arrived. That's why porting games is done so often and this has been successful. For the movies it will come down to exclusiveness. Consumers will adapt instead of dictate. I personally would like to see it go the way of downloads.
          • Re: (Score:3, Insightful)

            Blu-ray and HD DVD however offer no significant difference to the consumer, therefor one of the formats will go the way of the dodo, because it doesn't make sense for movie producers to have to produce different types of discs which basically do the same...

            Or what I think is more likely: format-agnostic players will become commonplace, and some studios will release solely on hd-dvd, others on blu-ray, and essentially the customer won't have to care.

            Not only are both formats very similar technologically, th
            • Re: (Score:3, Informative)

              A casual look at Nielsen or other numbers shows BR disc is the clear winner and the gap continues to widen. Sony's PS3 is the world's most popular BR player...anyone who owns one and an HDTV will naturally choose it as their format of choice. This helps their market penetration and attach rate. So far I've seen 3-1 disc sales in favor of BR discs and during Black Friday it spiked to 4-1.

              Europe has already decided on the BR format as well. An estimated 75% of HD movie sales have been BR discs. Person
          • I'm inclined to believe that the formats will settle into mutual coexistence. Physically, both media are the same. Same size and dimensions. Codec wise, there is little or no difference between them. The only difference is the physical way they are stored, which has about as much difference as a CD to a DVD. And since we have dual CD/DVD drives, I see them making multi CD/DVD/BluRay/HDDVD drives in the future as well.

            So basically, I see the format war as a bust and not a repeat of VHS/Betamax.
  • by KingSkippus (799657) * on Wednesday December 05 2007, @09:28AM (#21584503) Homepage Journal

    ...Or maybe it's because Microsoft has been a strong backer of the format since the very beginning, and doesn't want it to end up like all of Sony's other consumer device formats. (Betamax, MiniDisc, Memory Stick, SACD, UMD...)

    ...Or maybe it's because HD-DVD is the format that its cash cow video game console system supports, whereas they have nothing to do with Blu-ray.

    Of course, I could just be grasping at straws.

    At any rate, I do think he is right in that neither format will be the choice for obtaining and playing hi-def content, online distribution ultimately will win.

    • ...Or maybe it's because Microsoft has been a strong backer of the format since the very beginning, and doesn't want it to end up like all of Sony's other consumer device formats. (Betamax, MiniDisc, Memory Stick, SACD, UMD...)

      Strike that word "other." I'm well aware that HD-DVD isn't a Sony format. What I said and what I was thinking when I typed that (Sony's consumer device formats other than the competing Blu-ray...) obviously wasn't quite in sync.

    • by $RANDOMLUSER (804576) on Wednesday December 05 2007, @09:40AM (#21584651)

      ...because HD-DVD is the format that its cash cow video game console system supports...
      And, alternately, Blu-ray is what Playstation 3 supports, which I think is more like what thier real motivation is - Xbox vs PS3.
    • So what you are saying is that MS has a lot of financial incentive for HD-DVD to succeed, and that they are supporting it as a good business decision, rather than to make both it and Blu-Ray crash...

      A company, that has made lots and lots of money, whever even a guy who owns barely 10% of the stock is richer than God himself, and you think they do that by making good financial decisions???

      You must be new here.
    • by PlatyPaul (690601) on Wednesday December 05 2007, @09:51AM (#21584743) Homepage Journal
      I was with you right up until the end....

      I do think he is right in that neither format will be the choice for obtaining and playing hi-def content, online distribution ultimately will win.

      Online distribution is only feasible if you have an Internet-enabled device connected to your HDTV. Sure, media center PCs are getting more common (and more affordable), and the numbers [vgchartz.com] on HD-ready game consoles are steadily rising, but the vast majority of HDTV owners do not possess either (a fact that will likely remain, as the magnitude of the HDTV sales figures [parksassociates.com] indicates).

      Maybe in 10 years the tide will have turned and most people will be using online distribution. However, there's serious money to be made in the meantime, and that requires physical media.
    • by gad_zuki! (70830) on Wednesday December 05 2007, @10:28AM (#21585171)
      >online distribution ultimately will win.

      Really? So right now in the lo-def world we cant get this stuff to work and Joe Sixpack isnt goign anywhere near it and when he does the quality is shit (netflicks) but next year or two we'll have the extra bandwidth and marketshare and the equipment and joe sixpack's trust and a pricing scheme that works and and ....

      Right.

      Discs are going to be the delivery mechanism for the forseeable future. MS is backing HDDVD. Sony is with Bluray. This is just a slashdot trolling hit and run page. Enjoy the ad impressions.

      Not to mention if anyone pushes online distribution it'll be soaking in DRM. Enough to make bluray and hddvd look like Richard Stallman. This crowd will go apeshit and will never use it.
  • ... winning a monopoly case against Microsoft wouldn't Michael Bay is just PO'd that he isn't making more money hand over fist on that abortion of a commercial called "Transformers". I couldn't even tell it was a real movie through all the obvious and in your face product placement.
  • From being on the inside, talking to multiple Microsoft people including execs. I don't think this is a full out company wide goal of supporting HD-DVD. They're smart, but they don't predict long-term goals that well. I think their downloadable video's were aided in an accidental benefit of no clear direction in the format wars. They have been pushing HD-DVD since the beginning. With Big Screen installs in Circuit City/Best Buy stores using HD-DVD player attachments to play movies, games, etc.

  • by Churla (936633) on Wednesday December 05 2007, @09:33AM (#21584569)
    Because heaven knows Sony hasn't thrown around a ton of money to make sure it gets as many studios and others on the Blu Ray train.

    Both Sony and MS throw money into supporting the horse that their respective wagon is tied to. That's how it is.

    And I agree that in the long term on line distribution will win, but before it can the internet as we know it needs some substantial upgrading. Not to support the concept (it already does), but to support what happens when the masses start using it.
    • by east coast (590680) on Wednesday December 05 2007, @09:50AM (#21584735)
      And I agree that in the long term on line distribution will win, but before it can the internet as we know it needs some substantial upgrading. Not to support the concept (it already does), but to support what happens when the masses start using it.

      Bingo! MS isn't trying to destroy physical media anymore than Verizon is trying to destroy the POTS. While both know that the future doesn't lay in these technologies both also know that for now they're pulling down a reasonable profit with them because of mass usage.

      By the time the internet is seriously up to the task of delivering HD styled content to the masses both HD DVD and Blu Ray will have gone the way of the laser disc. The lifespan of these new formats will not be longer than that of the traditional DVD. We've been DVD for what now? 10 or 12 years? Do people here honestly think that technologies like FIOS are going to be nation wide (let alone world wide) in the next decade? I think people are fooling themselves into the ultra futuristic world of downloadable content being just around the corner. We have communities within 20 miles of a somewhat major city (if you can call Pittsburgh a major city) that still don't have DSL or Cable internet. This doesn't even bring the frail backbone of the internet into question.

      Online content as a mass market is still a long ways off and it's ability to replace physical media won't be a reality in the next 10 years.
        • Re: (Score:3, Informative)

          My DSL gives me about 150k/sec. Is that even sufficient to stream a hi-def movie?
    • by Steve525 (236741) on Wednesday December 05 2007, @10:00AM (#21584845)
      Both Sony and MS throw money into supporting the horse that their respective wagon is tied to. That's how it is.

      I agree. However, it is very clear why Sony is willing to dump a ton of money into Blu-Ray. It's pretty much their format. They'll make a killing if it becomes dominant, and they'll loose a ton if it looses.

      Microsoft, on the other hand, isn't as heavily invested. For example, their console supports HD-DVD only as an add-on. If HD-DVD becomes dominant, they get some licensing fees on each unit sold, which is no doubt nice, but not that big a deal.

      I think Microsoft wants to kill Blu-ray, but they don't care if HD-DVD succeeds or not. They don't want to be at the mercy of Sony for two reasons:

      1. If Blu-Ray becomes dominant, they'll be forced to licence it for their next console, (and possibly a XBOX360 add-on). What if Sony denies them? What if the fees put them at too much of a disadvantage.

      2. Microsoft envisions some soft of computerized media center in each home. They need some control of the format to do this.
      • by Serge_Tomiko (1178965) on Wednesday December 05 2007, @10:28AM (#21585157)
        Blu ray is NOT a Sony format, anymore than the CD is a Sony format. They are the dominant member of the industry consortium that developed Blu Ray, and one of the original developers. Microsoft would never have to license Blu Ray from Sony, they would license it from the consortium just as with the regular CD.

        What Microsoft does NOT like about Blu Ray is that it requires a java VM.
          • Wrong on two counts (Score:4, Informative)

            by SuperKendall (25149) on Wednesday December 05 2007, @10:47AM (#21585427)
            Thanks for pointing this out, and correcting me. It sounds like Sony would still get the benefit of licensing fees

            No, a neutral Blu-Ray forum gets the licensing fees [blu-raydisc.info]. Sony makes money the old fashioned way, selling hardware and software (media).

            Do you know why this (Java support) a big deal to Microsoft? It doesn't sound like there's any practical reason to me

            Why don't know why but we know it's a big deal to Microsoft, because the only thing that stopped HD-DVD and Blu-Ray combining a few years back was the refusial of the Blu-Ray consortium to add iHD (Microsofts menuing format) into the Blu-Ray standard.
              • by LionMage (318500) on Wednesday December 05 2007, @02:22PM (#21588655) Homepage

                Microsoft have many political reasons to dislike Java, but BD-J being a messy, ill-specced pile of slowness in comparison to iHD is a valid technical one.
                This is actually the first time I've seen anyone claim that BD-J is poorly specified or slow. Could you provide some references to support that contention?

                I can't speak to the speed of BD-J, though clearly this smacks of the "Java is slow" FUD that Java proponents have been dealing with for years now. Java VMs aren't really "slow" anymore, unless you're dealing with memory-constrained devices. Most Blu-Ray players are going to have plenty enough RAM, so I don't think constrained memory footprint is going to be an issue.

                As for the "ill-specced" claim, I'm puzzled. I know that BD-J is based on an already existing standard for embedding interactive Java content in terrestrial television broadcasts and European cable transmissions; this technology is used, for example, in the German version of "Who Wants to be a Millionaire?" (or maybe it was "Deal or No Deal") -- it allows viewers to play along at home using their remote control. BD-J is just an extension of this already existing and deployed standard, so how is it poorly specified?

                I attended JavaOne in 2006, and attended a couple sessions on BD-J and related technologies, so that's where I got my information from.
  • proof? (Score:4, Insightful)

    by gEvil (beta) (945888) on Wednesday December 05 2007, @09:34AM (#21584583)
    Does he have any sort of proof to back up this assertion? Not to mention that TFA states that Bay has gone on record saying he prefers Blu-ray. Considering all the crap that Michael Bay has put out, I have no problem calling this his own version of FUD.
    • Re: (Score:3, Interesting)

      It is well-known that the HD-DVD association gave some $150 million [bizzntech.com] to the studios to release movies exclusively on HD-DVD as opposed to Blu-ray. Several studios have taken them up on this generous offer, as the linked article indicates.

      Now, I have no idea whether similar deals are in place for Blu-ray. Sony, of course, is a major studio on its own, so it clearly has a vested interest in releasing exclusively on Blu-ray.

      [disclaimer: I'm a bit of a Blu-ray fan, I like the higher capacities]

      It is likely tha
  • by Dr_Barnowl (709838) on Wednesday December 05 2007, @09:35AM (#21584593)
    Microsoft wrote the software for the HD interactive [wikipedia.org], which means they must be getting a royalty for each machine.

    What's a few $100M here and there when you have the potential to collect so many licenses from consumer boxes?

    Plus, the Blu-Ray content software is written in Java. What better reason for MS to hate it?
  • by tbg58 (942837) on Wednesday December 05 2007, @09:36AM (#21584609)
    This development appears to be consistent and predictable. Look at Vista and its license agreement, and you see M$ trying to control not only the software layer but levying requirements on hardware makers, i.e. toe the line and show commitment to DRM in every layer of hardware or M$ won't certify your drivers, and this means NOT providing any open source drivers to the Linux community. Although Peter Gutmann's essay contained some inaccuracies, it detailed these steps. Why did M$ abandon technical functionality for the end user in favor of an OS that provides a bit of eye candy to users but a whole lot of technology that is aimed at protecting content provider monopoly? Why did they release the ultra-DRM portable platform, the Zune, about the same time? Why is M$ now meddling in the media content market, apparently trying to orchestrate some sort of movement in HD media? It has looked for some time like M$ sees the revenue stream Apple has through ITunes and thought it worthwhile to put a stake in the ground for developing a media market. Which, in typical M$ fashion, they want to control absolutely. Look for M$ to either acquire or announce a media provider that offers only protected WMA and ultra-DRMed MP3 formats to compete against ITunes. M$ sees that the OS and application space has limited legs. They appear to be making a move toward becoming a content provider. Pretty savvy on their part, but I think their jack-booted super-mega-ultra-DRM approach will not be well received. They're either way out in front on the cutting edge, or a dinosaur trying to put a cap on emerging mammals in the media marketplace. Time will tell.
    • by nschubach (922175) on Wednesday December 05 2007, @09:56AM (#21584793) Journal
      I thought about that too. A while back actually. If MS causes waves in the media industry. Get consumers pissed off and not buying, then stock prices fall and they can buy into some of these studios. They've already started putting up data centers. (preparing for what?) I think they saw the success of iTunes and wanted to get a leg up on the next thing. iMovies? Moviesoft? If they can buy into the studios, they can get voting privileges and coax the studios into giving the "exclusive" access to heavily DRM'd download movies. I'm pretty sure this is why Vista was so DRM heavy and the whole move behind Media Center functionality. To get that ball rolling in their biggest market. Once (if) they get to that point, they simply claim that OSX and Linux are not secure enough to protect the artist and therefore they do not support clients on those machines. They essentially turn the movie industry into the gaming industry and get a cut of every sale cementing their long term income.
  • FUD (Score:4, Insightful)

    by east coast (590680) on Wednesday December 05 2007, @09:39AM (#21584637)
    Maybe MS sees Blu Ray as the next Betamax? (http://arstechnica.com/news.ars/post/20060420-6641.html)

    Maybe since they're offering their set top game box in HD DVD it's a business interest?

    What's the problem here and why is this news?

    They have real interest in seeing HD get the upper hand. Yes. Would they like to see downloadable content as a better business prospective? Yes. Who doesn't. MS has invested billions into their 360 product, throwing in a bit more money to give it the edge in home movies isn't unthinkable and certainly isn't unheard of.

    I seriously do not understand why people are in such a twist over this. Oh, that's right, it's because it's big bad Microsoft and we all need to focus our attention for our daily two minutes of hate.
    • Re: (Score:3, Insightful)

      Heh, what I find funny is that if, say, Apple, did the exact same thing, people would be happy.
  • Nobody wanted two different hd formats, it was just that some companies wanted to cash in on their own stuff. Id say this time I am on Microsofts side, they are just intelligent enough to see an idiocy where everybody outside of Sony, Toshiba etc... could see it as well!
  • by Xest (935314) on Wednesday December 05 2007, @10:00AM (#21584835)
    I don't care why Microsoft would support HD-DVD, I'm just glad that they do although the argument seems rather foolish because you could equally argue Sony are trying to fuel the HD-DVD war so that they can sell more PS3s and downloadable movies via their online store too.

    The HD-DVD format whilst not perfect is much more consumer friendly in that it's cheaper, it's region free and it's backwards compatible to an extent.

    In comparison Bluray suffers from being region locked, having much more unfriendly, more problematic DRM and doesn't support backwards compat. in DVD players.

    A lot of people don't want HD-DVD to win because Microsoft are backing it, but I think Microsoft is the lesser of two evils in this case, the biggest bonus for me is the region free part, whilst this is probably largely useless for North American consumers who get films earlier and cheaper anyway for those of us in Europe this is immensly important, rather than paying £23.99 for a film we can import it for about £15 and often get it 6 months earlier. With Bluray you're stuck with your £23.99 cost and the 6 month delay between North American and European releases.

    Sadly it may be too late, HD-DVD isn't holding up that well right now it would seem, for me personally if HD-DVD won I would buy an HD-DVD player because of the cheap import HD-DVDs I can buy but if Bluray won I'd go for online purchases of HD content for no other reason than I refuse to pay over £15 for a movie.
    • Re: (Score:3, Interesting)

      The HD-DVD format whilst not perfect is much more consumer friendly in that it's cheaper, it's region free and it's backwards compatible to an extent.

      Of those, only one is true and one is partially true. HD DVD is region free and its the one great feature it has. It is only partially true to say HD DVD is cheaper since it is only because Toshiba is subsidizing it. The technology for Blu Ray and HD DVD is virtually analogous and therefore incurs similar costs. It's just the Blu Ray camp doesn't have the lu

      • Re: (Score:3, Informative)

        It seems silly to speculate that Toshiba is subsidising HD-DVD and the Bluray group are not, particularly as Sony was selling PS3s at a loss for so long which was attributed to Bluray and Cell.

        In terms of backwards compatibility I refer to the fact that HD-DVDs can use a layer of the disc for DVD such that you can buy HD-DVDs now and use them in your existing DVD player and have them play standard def. then when you do make the switch to HD-DVD you've already got a library of HD films meaning you don't have
            • Re: (Score:3, Insightful)

              Should we not worry that even those that helped develop the standard can't implement it succesfully then?

              Tell me a standard which you believe to have been implemented perfectly by all supporters of it, especially one that remotely approaches the complexity of Blu Ray standard.

      • Re: (Score:3, Informative)

        Because HD-DVD comes from the DVD group, they can make combo discs that have DVD on one side and HD-DVD on the other. In fact, there's another portion of the spec that allows 1-2 layers of HD-DVD and 1 layer of DVD on the same side (The Freedom Anime DVD released in the US is done this way). This can't be done on Blu Ray because of licensing issues, from what I understand.

        This allows, in the future, for a studio to release only one product, a Twin DVD/HD-DVD combo disc that plays in both DVD players and H
      • Re: (Score:3, Informative)

        The DRM is not more problematic.

        This is very much untrue. HD-DVD "only" supports AACS, while blu-ray additionally supports BD+. This runs some code in a virtual machine to ensure the player integrity. Now some discs are supporting this, and apparently older players have a lot of problems with these discs (that is, they don't work at all without a firmware upgrade). And if it works, it seems to cause longer load times and other performance issues. Now, it may be true that this is the fault of the players, but BD+ inherently is another "fe

  • by mi (197448) <mi+slashdot@aldan.algebra.com> on Wednesday December 05 2007, @10:11AM (#21584947) Homepage

    Microsoft really can't do anything right, can they? First they got into a ton of trouble for attempting to help on HTML-browser implementation (their own) win — and the web-masters are still forced to maintain compatibility with completely different programs.

    And now Microsoft is blasted for maintaining competition — between multiple formats, because forcing the DVD-authoring teams to make versions for various players is somehow "totally different".

    Yes, I know, you'll claim, that "there should be one standard and multiple implementations". Well, if the standard is the high-quality TV-picture/sound (and who really cares for anything else?), than the BlueRay and HD-DVD can be considered just different implementations that should compete in perpetuity...

  • Faulty premise. (Score:3, Informative)

    by iainl (136759) on Wednesday December 05 2007, @10:39AM (#21585307)
    It's pretty pointless discussing why Microsoft might give Paramount $100M in advertising assistance if it's actually Toshiba that did it instead.

    This rant from Bay is about as logical as the plots to his movies.
    • I don't believe Michael Bay either, but how deliciously evil would this be if Microsoft actually planned this? This is the kind of evilness that requires a slow clap.
        • How is this open? (Score:5, Informative)

          by SanityInAnarchy (655584) <ninja@slaphack.com> on Wednesday December 05 2007, @02:43PM (#21588927) Journal

          Yes, how deliciously evil for Microsoft to be buying support for an open and public standard (HD-DVD)

          I'm sorry, but at least, say, OOXML pretends to be open. Google for "OOXML Specification dowload" and the very first result has PDFs, linked to directly, not even so much as a free registration required.

          I develop HD-DVD applications for a living. On my desk are four volumes of "DVD Specifications for High Definition VIDEO (HD DVD-Video)", totaling almost three inches thick. (I'd tell you how many pages, but the pages are not numbered.) There's probably another three and a half inches worth of updates, which someone else here has read and memorized, that I don't really look at.

          We do not have these in electronic form. As far as I know, you cannot get them in electronic form, and they do not come with an index, which makes them a bitch to search until you start to memorize enough of it to have a vague idea of where to start randomly flipping through to find what you need.

          This is because on every single page, at the bottom of the page, is the following notice:

          DO NOT COPY ©Copyright 2005--2006 The DVD Forum*. All rights reserved. CONFIDENTIAL

          "Open" and "public" my ass.

    • by Tom90deg (1190691) on Wednesday December 05 2007, @09:40AM (#21584649) Homepage
      It also doesn't make much logical sense. Bay claims that MS is prolonging the format war until they can get downloadable video working right, then swoop in and be declared "A winner is you!" Seems to me that Bay as been watching too many of his own movies.

      True, Downloadable video is nice, as is stuff like Video on demand. I can picture telling my kids that "In my day, if you wanted to watch a show? You just had to wait until it was on." However, I don't think that downloadable movies will ever overtake actually having the disk in hand. If I want to watch Army Of Darkness, I don't want to wait 20 minutes for it to stream, then hope that my connection stays steady enough to prevent it from freezing. Just pop in the disk, no problem. The more steps you take from wanting to watch a movie, and pressing play, the worse off it is, in my opinion.
      • by tbannist (230135) on Wednesday December 05 2007, @09:46AM (#21584695)
        Microsoft is quite obviously betting it will. In fact, they've been telling people that's the future that Microsoft will bring for years now. I went to a "Digital Home" show that was nothing more than Microsoft shilling their Digital Home products under a different name.

        Throw in the added benefit of taking some of the wind out of the PS3 and it seems like a very cheap way for Microsoft to purchase marketshare in several different markets (Console, DVD Downloads, Home Electronics).
        • Microsoft is quite obviously betting it will. In fact, they've been telling people that's the future that Microsoft will bring for years now. I went to a "Digital Home" show that was nothing more than Microsoft shilling their Digital Home products under a different name.
          That sounds rather underhanded of them.
      • by jedidiah (1196) on Wednesday December 05 2007, @09:48AM (#21584717) Homepage
        pppffft.

        That's already the case with Tivos and Tivo-like devices.

        You just wait until it's "been released" and then decide
        when you're going to get around to watching it after that.
        The more storage space you have in your PVR, the more it
        starts to look like your own personal VOD system. You
        just need to give it a little time to accumulate stuff.

        Streaming is always open to problems. Whereas whole files are
        a lot more reliable to deal with. It doesn't really matter if
        they were downloaded from a torrent or recorded off of some
        TV broadcast channel.
      • Re: (Score:3, Insightful)

        It also doesn't make much logical sense. Bay claims that MS is prolonging the format war until they can get downloadable video working right, then swoop in and be declared "A winner is you!" Seems to me that Bay as been watching too many of his own movies.

        One of their largest competitors in a huge emerging market has financially backed the other format(Sony). If Sony dominates with blu-ray then it becomes a more attractive feature to potential buyers. If there in uncertainty over the format then it blunts the attractiveness of such a feature. Remember MS real goal, to place a MS controlled media system format into out living rooms.

        True, Downloadable video is nice, as is stuff like Video on demand. I can picture telling my kids that "In my day, if you wanted to watch a show? You just had to wait until it was on." However, I don't think that downloadable movies will ever overtake actually having the disk in hand. If I want to watch Army Of Darkness, I don't want to wait 20 minutes for it to stream, then hope that my connection stays steady enough to prevent it from freezing. Just pop in the disk, no problem. The more steps you take from wanting to watch a movie, and pressing play, the worse off it is, in my opinion.

        The idea would be DRM'ed download files. So you want Army of Darkness, well you could spend $9.95 and go to the mall for the DV

        • Re: (Score:3, Insightful)

          CDs aren't yet dead, and the mp3 format is older than a decade.
                So yes, it will take a decade for downloaded videos to kill DVDs and high definition alternatives
          • Re: (Score:3, Informative)

            Indeed, the CD is far from dead. The RIAA has been saying that MP3s are hurting CD sales for almost a decade, yet there is still a large space devoted to CDs at Wal Mart, Best Buy, etc. I don't see a lot of buggy whips at WalMart.

            And his post was "insightful?" The RIAA lawyers must have mod points [slashdot.org] today!

            -mcgrew
    • Re:Wait a minute (Score:4, Insightful)

      by GranBurguesa (720088) on Wednesday December 05 2007, @10:09AM (#21584925)
      No, the complaint isn't that Microsoft is supporting one format over another or even both at the same time. The problem is that they are allegedly encouraging "exclusives" on one format or another, i.e. you want a particular movie, you can only buy the HD-DVD version. This means consumers have less choice, not more.
    • Re: (Score:3, Insightful)

      Actually, Paramount and Dreamworks customers had a choice (they could buy movies on whichever format they wanted.) The check from Microsoft was for exclusivity. The end effect was not less choice, but no choice.