Arstechnica: Microsoft using muscle to promote HD DVD

Arstechnica: Microsoft using muscle to promote HD DVD

Article Clip:
The question of motives is a never-ending one, and it has been rehashed more than once on Ars. The most common theory is that Microsoft is ultimately doing anything in its power to put the hurt on Sony's PlayStation 3, which will come equipped with a Blu-ray drive. The theory says that Microsoft is worried that the PS3 will dominate gaming once again, partially on account of the device's potential dual-role in the household: gaming console and Blu-ray player.

It goes without saying that Microsoft has an interest in seeing the PS3 reined in, but I don't believe that this explains the entire picture. Indeed, as I wrote back in September, there are other factors at play here (all of which I cannot address here), and the EE Times seems to have caught on. Microsoft's Media Center ambitions are huge, and in my opinion, they're bigger than those surrounding the Xbox 360. Make no mistake about it: the next version of Windows will be billed as an entertainment OS, and the Xbox 360 will be subjugated to that. Here's why.

First, the Xbox 360's hard drive is small, and even if you quadrupled the size, it's still meager by today's standards. Knowing that the PC is where the storage muscle lies, Windows Vista will act as home to all of your digital content. Movies (ripped or bought online), music, pictures, and more will reside on the main Media Center PC. Where does the Xbox 360 fit in? If a Media Center is networked properly, it can stream video content to up to five Xbox 360s simultaneously, within the same home. As you can see, Microsoft is thinking along the same lines as Sony: create a device that is both a console, and a media player. The difference, however, is that Sony will see the PS3 as a hub itself, while Microsoft is banking on the Windows Vista OS itself, which can use the Xbox 360 as a media extender, or it can use other products that are designed to act as media extenders without gaming functionality, such as D-Link's MediaLounge line.
 
I was thinking this myself.
"One of the most potentially divisive elements in the Blu-ray camp is Sony undercutting all the CE products with a Playstation 3 that does everything a Blu-ray player will do—and much more."
What incentive will other CE manufacturers have in selling a BR drive when they must pay higher royalties and face the competition of a subsidized player? More puzzling is that very same competitor is the largest benefactor of the royalties.
 
nelg said:
I was thinking this myself.

What incentive will other CE manufacturers have in selling a BR drive when they must pay higher royalties and face the competition of a subsidized player? More puzzling is that very same competitor is the largest benefactor of the royalties.

Because the idea is that Sony is the one that will single-handedly make the format popular and thus a viable platform with the expected success of the PS3. None of this corporate/political BS from Sony, Toshiba, MS, and any other company involved in this next-gen format war will mean anything in the end, IMO. HD-DVD and Blu-Ray are guaranteed three to five years worth of non-notable status for the masses...they'll be Laser Disc-like until there's enough content and HDTV adoption out there to justify the purchase of the players for the masses.

For PS3, it's not going to affect anything except the power play that Sony is trying to orchestrate with PS3 and Blu-Ray.
 
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MightyHedgehog said:
Because the idea is that Sony is the one that will single-handedly make the format popular and thus a viable platform with the expected success of the PS3. None of this corporate/political BS from Sony, Toshiba, MS, and any other company involved in this next-gen format war will mean anything in the end, IMO. HD-DVD and Blu-Ray are guaranteed three to five years worth of non-notable status for the masses...they'll be Laser Disc-like until there's enough content and HDTV adoption out there to justify the purchase of the players for the masses.

For PS3, it's not going to affect anything except the power play that Sony is trying to orchestrate with PS3 and Blu-Ray.

To me, the real question is if during that 3-5 year lag you mention, (or 2 years to eb conservative) will digital distribution come of age and supplant any need for a physical media for HD movies.
 
kyleb said:
I don't see that happening unless someting magic makes bandwidth start growing on trees.

I think once you have motivated providers and a customer base thats largely driven by convenience in the same equation, its certainly possible that digital distribution can take hold in the next 3-5 years.
 
It sure isn't going to replace ~25GB disks for me as long as my ISP is charging anywhere close to the dollar a gigabyte which they currently do.
 
kyleb said:
It sure isn't going to replace ~25GB disks for me as long as my ISP is charging anywhere close to the dollar a gigabyte which they currently do.

Your ISP charges you per gigabyte of bandwidth? Wow. Every ISP I've ever had, had a flat rate, no matter what kinda use I put it through (and trust me, I had a month where I uploaded and download an amazingly large amount of data and got no warning). Now I have never lived in a big city or a heavily populated area, so maybe I'm lucky (or not so lucky with my current 384/384 connection).
 
kyleb said:
It sure isn't going to replace ~25GB disks for me as long as my ISP is charging anywhere close to the dollar a gigabyte which they currently do.

What country are you in? I've never heard of a per/GB rate.

Anyway i dont think we'd be DL'ing 25GB worth of data, a 2-hour 720p WMVHD clip is around 7GB.
 
The only per GB rate I've ever heard is for leased lines. And most of them are slower than current ADSL anyway.
 
I get 10GB a month with my serivce and 10GB per $10 after that.

http://www.sunflowerbroadband.com/pricing/

I suppose it depends on how your ISP does their books, but they pay for bandwidth to so while they might let you get away with downloading massive amounds now they would surely have to charge more if everyone started doing it.
 
Yeah, I wouldnt touch a company like that with a 10ft stick. My SBC is crap, but a payment system like the one you had and I'd just go back to dial up.
 
I do wonder about this whole situation.

According to the wiki (yeah I know, not totally reliable) DVDs have only really outsold VHS videos this year. Assuming that is the case, we have had DVDs for just on 10 years now, so that means market saturation took 9 years. It's anyone's guess how long High capacity disks will take. Yes the market is more accustomed to disks now, but what about needing HD tvs, etc? I know here in new zealand HD tvs are only just appearing, and only as 'HD ready' as HD content is still years off, and only thorugh specialist AV stores.

I just wonder if the average buyer will really care?

Another thing I wonder about... It's fair to say the early adopters are mostly 'audiophiles' (urgh I hate that word), AV enthusiasts, etc. These people don't usually strike me as the type to buy a console for the optical drive, they would by a dedicated component part, like I would (and do.. :0)...


[EDIT]

and don't start on broardband in new zealand... ohh dear...

a common plan is:
10 gig usage, 1mbit. hit the limit, you get reduced to 64kbit/sec (!!!)
thats usually somewhere around $50-60 a month.
Up until recently, if you went over the limit, you were charged at 20c / mb.
and if you are a buisiness, prices are generally ~5x higher at least. Don't even start me on 'business hosting' from some of NZ's larger ISPs... ohh my god... 10mb storage anyone? 100mb transfer? ~$50 month? It's not all that bad, but some companies are certainly taking advantage...

But thats getting way off topic.
 
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kyleb said:
I get 10GB a month with my serivce and 10GB per $10 after that.

http://www.sunflowerbroadband.com/pricing/

I suppose it depends on how your ISP does their books, but they pay for bandwidth to so while they might let you get away with downloading massive amounds now they would surely have to charge more if everyone started doing it.

That's... horrible. Just horrible. ;)

I take the "bandwidth costs" argument pretty damn lightly, if I can be frank. My ISP have been providing 10/10 access for 5-6 years now, with no restrictions whatsoever. I checked my traffic over a 6 month period, and it was well into the 1TB/month range. Furthermore, although all subscribers know there is no restrictions and use it as much as they can(read: until they grow tired of filling their drives with crap, just for the hell of it), I have never once seen any congestion or overloading. And this for ~$40/mo... They tried to launch 100/100 with a 300G/mo limit btw, but that was a complete dud. Now they upped to 100/10 for everyone instead. :) Still no limit. They have xDSL also, and you get maxed out lines, whether VDSL, ADSL2+ or ADSL.

If my memory serves me right, they turned a profit this year, after 6 years of investment.

$1/1G is of course completely arbitrary, just so they can cheap out and coast on their investment(routers, lines) they did in '99 or something without reinvesting a dime. The fact is that bandwidth pricing is far, FAR from linear, the largest initial investment is in the physical bits, the fibre itself, equipment housing and the like. Then what kind of bandwidth you provide on that infrastructure is dependent on the equipment, which is a comparatively pretty small investment. All in all, depending on how you write it off, increasing the bandwidth 10x or more could maybe increase the end price 10-25% or something. ...but if they can keep their customers anyway, why bother? :???:
 
kyleb said:
It sure isn't going to replace ~25GB disks for me as long as my ISP is charging anywhere close to the dollar a gigabyte which they currently do.
i don't expect digital distribution to use the internet as a mode of transport anyway. i'd expect cable and satalite providers to team up with set-top box manufacturers to provide basicly super DVR's, with massive storage and reasonable DRM before any company starts providing high def content for the PC. the PC market is small compared to the set-top box market, and set-top waters are usualy less pirate infested.
 
Skrying said:
Yeah, I wouldnt touch a company like that with a 10ft stick. My SBC is crap, but a payment system like the one you had and I'd just go back to dial up.
I rarely ever even get close to using the 10GB a month that comes with my connection, so it really doesn't bother me. Besides, on dial up I'd barely be able to get 10GB in a month even if I dedcated every nearly wakeing hour to downloading stuff. ;)

And yeah, I know bandwith doesn't cost them a flat rate like that; but it does cost them and they have to distribute that cost one way or another.
 
see colon said:
i don't expect digital distribution to use the internet as a mode of transport anyway. i'd expect cable and satalite providers to team up with set-top box manufacturers to provide basicly super DVR's, with massive storage and reasonable DRM before any company starts providing high def content for the PC. the PC market is small compared to the set-top box market, and set-top waters are usualy less pirate infested.

Yep thats another avenue for sure. I think before all is said and done we'll see both though and within the next 2-3 years.
 
expletive said:
To me, the real question is if during that 3-5 year lag you mention, (or 2 years to eb conservative) will digital distribution come of age and supplant any need for a physical media for HD movies.


But doesn't Sony own about half of Hollywood?
 
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