Microsoft ‘backed the wrong horse’ in HD format match
Effect on console market uncertain
By TODD BISHOP
P-I REPORTER
Last updated February 19, 2008 8:29 p.m. PT
http://seattlepi.nwsource.com/business/351871_msfthd20.html
PS3 Beat Out Xbox in January
Stephen Silver
February 19, 2008
http://www.dealerscope.com/story/story.bsp?sid=91303&var=story&publication=Dealerscope&publicationDate=2/19/08&slug=DSEnews5_021908_PS3January&category=None§ion=Unknown
Wii sales beating Xbox 360 and PS3
Nintendo console predicted to be most popular by end of 2008
Written by Simon Burns in Taipei
vnunet.com, 18 Feb 2008
http://www.vnunet.com/vnunet/news/2209876/wii-sales-beating-xbox-360-ps3
Sony U.S. shares rise on PS3, Blu-ray optimism
Tue Feb 19, 2008 11:18am EST
http://www.reuters.com/article/hotStocksNews/idUSN1925691620080219
Microsoft hedged its bets. Since the HD-DVD was an optional external, I’m sure they could work out a Blu-Ray external.
Microsoft didn't back the wrong horse as if they were betting at the racetrack, but rather Microsoft and its team of programmers was one of the horses pulling a quickly-faltering and ultimately losing effort.
Sony has had a big name in the movie industry for quite a while. Thoguh Microsoft had a distinct advantage regarding technological hardware and software technology involved in the jump to blue laser and DRM, film and video industry players were far more inclined toward Sony's Weltanshauung when it came to lesser technological issues. Furthermore, seeing Microsoft's Windows Media Center activities, including those dependent players (not to mention a Microsoft VP) openly advocating the ripping of encrypted DVDs and obvious propensities toward building digital libraries of DVDs on hard disk, made rightsholders more than nervous about siding with Toshiba/Microsoft's HD-DVD effort.
In the few months before products were actually introduced, Microsoft looked invincible, touting to industry movers and shakers their camps many advantages. All the while, Sony was playing things close to the vest while looking for openings from the "movie industry" noobs. I believe they saw several.
Micrsoft VP Majidimehr glowingly touted HD-DVD throughout the contiguous forty-eight and on a Caribbean cruise, making it appear HD-DVD had every advantage going for it. But the industry-watchers knew Sony was not asleep at the switch. While some HD-DVD player devices only do 1080i, all BD players do 1080p, which can produce an appreciably better image. (Nonetheless, unpleasantries also lie in wait to ensnare BD buyers. The permutations and complications make even savvy geeks' heads spin.)
Certainly going full speed ahead with the PS3 release despite reportedly losing their "shirts" in the process, I believe was ultimately viewed as both chutzpah and commitment, while it inflated the empirical installed base numbers somewhat fraudulently. (A large proportion of those PS3 users won't be buying lots of BD disks any time soon, but the big numbers look good on paper and have swayed players into their camp, IMHO.)
Ultimately, however, in true Jackson-Sharpton style, Warner and Fox held on to play the part of lynchpins, and were able to extract a reported cool billion dollar "incentive" to come over--exclusively--to the Blu-Ray camp, making the emotional impact cum foreign language gibberish of the Hitler YouTube piece so appropos.
If Sony hadn't been willing to make such an over-the-top deal (thankfully, with their friends) to end the war, they may well have lost, as they are certainly deep enough into red ink to crush all hope among accountants of most lesser companies. IMHO, not losing yet doesn't exactly make them winners. I believe the daunting issues that face them still will not open the floodgates of sales their spreadsheets doubtless depend upon. Furthermore, SONY's bets on (AACS) DRM and reneged managed copy will keep them from being perceived as enlightened, which would otherwise show significant good will to pundits and prospective customers alike.
But Microsoft didn't play this one very well, it's true! Too few heavyweights truly committed to HD-DVD without hedging their bets. Microsoft's betting was only half-hearted, probably seeing what poor return they've had in this area for over a decade. If they'd've bet like Sony, they could perhaps have plied their advantages better. But ultimately, "Content", not technology, "is king!" Amir.
HF