HD-DVD theory

[chedabob]

Microsoft stepped up to deliver iHD (later renamed HDi), which was a trademarked implementation of HD DVD's XML markup language. Toshiba liked it. They made HDi functionality a standard for HD DVD players, and eventually partnered with Microsoft to expand HDi's reach by founding the Advanced Interactivity Consortium. The primary goal of this group was forging industry relationships to further promote HDi in emerging outlets like downloadable and streaming media.

The deal gave HD DVD its competitive next-gen features, but here's the rub: Microsoft didn't need physical media to implement HDi. All of HDi's interactive bells and whistles could theoretically be applied to downloadable video content, as long as a runtime environment was available. Even as the disc format war raged on, elements of HDi's runtime environment showed up in Microsoft products like the Xbox 360 and Vista.

So, let's put everything together. Microsoft has a popular gaming console and an operating system that are HDi compatible. It also has a group of developers working on HDi applications, and a 360-accessible HD video library that could feasibly be outfitted with next-gen interactivity features. All that's left is the dog and pony show needed to convince content providers that HDi-enhanced content and Microsoft's video outlets are key to making HD video downloads a viable revenue stream.

Xbox-Scene News: The real reason Microsoft won't bring Blu-ray to the Xbox: HDi

Right, so here's my theory: HD-DVD was just a way to distract Sony. Microsoft and Toshiba stood to lose billions if HD-DVD fails (which it did), but Sony will lose more if HDi takes off. Discuss.

EDIT: I'll admit, it's a long shot. But it's possible. Microsoft must have been pretty certain around the time that PS3 launched that HD-DVD was a sinking ship.

[Darth Daver]

I think this is probably true, if at least partly. MS weren't as active as they should've been in the high def format war. It would've been easy for HD DVD to win if they bought up the studios/retailers exclusivity like Sony were doing. I think MS's inactivity is proof enough that they had alternate objectives. There have been far too many rumours that MS were only in the format war to slow down high def adoption.

[ltzasz]

Really, I don't think they used HD-DVD as a distraction. I do believe that downloadable content is the way of the future, but I doubt MS would waste a couple billion dollars just to distract Sony. They could have just went with downloading to begin with, which would bury Blu-Ray.

[dz06lt]

MSoft wants digital distribution everyone knows that

[Power666]

Everyone, including Sony, knows that moving to downloadable distribution is the future. Their is still a viable market for HD capable discs until both the network infrastructure and device capabilities get sorted out. Quite simply, MS did want HD-DVD to succeed, at least for the time being.

The reason HD-DVD failed is simple: studio support. Had one major studio swung the other way, the technology would still be alive.

One thing that is often overlooked was HD-DVD's online features, which could have been used to help transition to downloads in the future. These features are arriving with the new Blu-ray spec, so Sony can control their part in this transition.

[OPETH]

I don't want the future to be digital downloads but it looks like its going that way, hopefully there is a good few years left until disks are phased out

[NapalmRiot]

Hey, Xbox-Scene, I go there for modding news.



Anyway, as Power says, there's no reason HD-DVD hadn't have failed if there was more support for it from big studios.

[downphoenix]

I doubt MS thought that HD DVD was a sinking ship, but they probably didn't want to put all their eggs in 1 basket.

[Spindel]

pfff... pay for digital downloads???

Now that BD+ is cracked?
Suckers!

[Icemage]

It doesn't really have to be an either/or situation. I am sure Microsoft had their own reasons for doing what they did.

(1) HDi is their new baby, and HD DVD was one of the main ways they wanted to proliferate it. If they could get it commonplace on HD DVD, it would have made it easier to pitch it to studios and other content providers when the time for digital downloads rolls around (and to be fair, HDi is a pretty decent platform, when all is said and done).

(2) Having Toshiba stall Sony on the Blu-ray front gave the Xbox 360 some breathing room. With no HD DVD to slow Blu-ray, I think it is likely we'd have seen PS3 sales overtake 360 sales a lot sooner than they have (whether they stay that way is still up in the air, but it's looking likely). It took the "best HD option" talking point away from the PS3 for thirteen months, and left them in a decent position of hardware install base superiority against both the PS3 and the Wii in the USA. "The enemy of my enemy is my friend", etc.

(3) Microsoft also partnered with Broadcomm to produce HD DVD audio/visual processing chips based on Windows CE. If HD DVD had won the format war, this would have been another win for Microsoft.

It'll be interesting to see where Microsoft goes with HDi from here. They obviously haven't given up on it; I expect their next move is to put some HDi integration into Xbox Live downloads.