They clearly stand to gain from HD-format failure as their avowed goal is digital distribution, their major push is the Digital Livingroom, and MS technology everywhere in that living room, with the PC as the hub.
If HD media succeeds, it means the entire industry, from Hollywood to retailers to electronics manufacturers will be pushing the optical ecology. It means content creators will be less inclined to produce DD because of doubling the work, it means DD will have to fight entrenched optical in the consumer space for mindshare. MS clearly doesn't want this.
But if HDDVD-BluRay are a repeat of LaserDisc, then they will fail mass market adoption, yet tons and tons of people who already own HDTVs and PCs will be craving HD content: and that's when MS swoops into the rescue. DD requires no extra purchase for the consumer who already has HDTV, DSL, and a PC. And STBs will require minor modifications, sometimes *only firmware upgrades* to handle (in the case of PVR STBs)
Now, imagine the consumer pitch:
1) HD-DVD/BluRay - expensive and dying
2) You already have a PC, HDTV, DSL
3) for just a software upgrade and nominal fee you can playback HD content
4) or, you can buy MS approved media playback STBs, subsidized perhaps like the XB360, for like $100.
So, spend $300-800 on HDDVD/BluRay and $30-40 per disc, or spend $100 on an STB and pay MS $10 per movie.
I hate this, just as I despise AppleTV. Because these digital downloads *SUCK*. They have gimped resolution (not 1080p), gimped audio tracks, no "extras", multilanguage tracks, subtitles, commentary, outtakes, etc.
For similar reasons, I hate broadcast HD today, like on DirectTV, Fox, and Cable, which their inferior SD-upscales/fake HD, and half HD bitrates.
If HD media succeeds, it means the entire industry, from Hollywood to retailers to electronics manufacturers will be pushing the optical ecology. It means content creators will be less inclined to produce DD because of doubling the work, it means DD will have to fight entrenched optical in the consumer space for mindshare. MS clearly doesn't want this.
But if HDDVD-BluRay are a repeat of LaserDisc, then they will fail mass market adoption, yet tons and tons of people who already own HDTVs and PCs will be craving HD content: and that's when MS swoops into the rescue. DD requires no extra purchase for the consumer who already has HDTV, DSL, and a PC. And STBs will require minor modifications, sometimes *only firmware upgrades* to handle (in the case of PVR STBs)
Now, imagine the consumer pitch:
1) HD-DVD/BluRay - expensive and dying
2) You already have a PC, HDTV, DSL
3) for just a software upgrade and nominal fee you can playback HD content
4) or, you can buy MS approved media playback STBs, subsidized perhaps like the XB360, for like $100.
So, spend $300-800 on HDDVD/BluRay and $30-40 per disc, or spend $100 on an STB and pay MS $10 per movie.
I hate this, just as I despise AppleTV. Because these digital downloads *SUCK*. They have gimped resolution (not 1080p), gimped audio tracks, no "extras", multilanguage tracks, subtitles, commentary, outtakes, etc.
For similar reasons, I hate broadcast HD today, like on DirectTV, Fox, and Cable, which their inferior SD-upscales/fake HD, and half HD bitrates.