Print - Microsoft Using OS Clout to Push HD-DVD? [Updated]

In the battle for next-generation DVD formats, in which Sony-backed Blu-Ray will compete with Toshiba's HD-DVD for supremacy, a new deciding factor is emerging in Microsoft. The software giant, which announced its support of HD-DVD earlier this year, is reportedly considering an effort in which it will leverage its dominant Windows operating system to push HD-DVD over Blu-Ray. The decision comes after a failed effort to get the Blu-Ray and HD-DVD camps to work together on a single next-generation DVD standard.

According to a report in the "EE Times," Microsoft is considering two ways in which it will push HD-DVD over Blu-Ray. First, it will support only HD-DVD in its upcoming Windows Vista operating system, which will be installed on hundreds of millions of computers within a year of its release in late 2006. Second, the company is investigating issuing cash credit in the form of coupons for PC makers that choose to install HD-DVD (and not Blu-Ray) hardware on their Vista-based PCs.

There is early evidence that this work is already commencing. In October, Hewlett-Packard (HP), the world's second-largest PC maker, announced that it would support HD-DVD as well as Blu-Ray. HP is on the board of the Blu-Ray Disc Association and was an early backer of the Blu-Ray format. Now, HP--a close Microsoft partner--has joined the HD-DVD Forum as well. This change of alignment might be simple business pragmatism, as it behooves HP to not back only one next-generation DVD format. But the company did reveal that the change of heart came after a series of meetings with Microsoft. The software giant, it seems, was a bit upset that HP had previous said publicly that there would be "legal implications if Microsoft is using its dominance in the operating system market ... to play favorites and hurt the competition."

Though one might debate the technical merits of Blu-Ray and HD-DVD (from what I can see, Blu-Ray is dramatically superior), the cost of HD-DVD hardware is considerably lower, especially for PC makers. HP says that Blu-Ray royalties amount to about $30 per Blu-Ray drive, whereas HD-DVD comes without any royalty costs for the most part. Plus, support for HD-DVD will be integrated into Windows Vista. To support Blu-Ray, PC makers will need to pay for third party software that lets the hardware interact with the operating system.

Also, consider the fact that Microsoft and Sony, which is the primary proponent of Blu-Ray, are competing in the video game space, and that Sony will push Blu-Ray in its upcoming PlayStation 3 video game console. By backing HD-DVD and basically forcing PC makers to use the format, Microsoft is able to harm a competitor in ways that would be impossible if the company simply bundled HD-DVD hardware with Xbox 360 and then supported both HD-DVD and Blu-Ray in Windows. Logically, one might expect an OS maker like Microsoft--and its PC maker partners--to support any desirable optical disk formats in their systems. That Microsoft is not doing that, and shunning Blu-Ray, suggests that the company is more interested in harming a competitor than in helping its customers.

UPDATE
Microsoft tells me that it has "not offered PC [makers] special discounts or financial terms related to Windows Vista in exchange for adoption of HD-DVD technology." The "EE Times" report, it seems, was so off-base, Microsoft chose not to respond.

As noted in my original article, Microsoft will not be providing native Blu-Ray compatibility in Windows Vista, but will instead rely on PC makers and other third parties to add that support as needed. However, Microsoft tells me that it is not trying to lock out Blu-Ray from the PC environment. Instead, building native Blu-Ray support into Vista was impossible simply because the Blu-Ray specification wasn't finalized early enough to be included in that version of Windows.

nice article too bad there is nothing there to read. At the time of this writng I just see Paul a ad and comments section. Good job Web Master

Good artilce I just see paul and a ad and comments section at the time of this writing. zgood Job we master.

By all accounts, HD-DVD hardware won't fit in slimline notebooks. Oh, wait...Microsoft doesn't BUILD any of these! Oh, wait...SONY and Apple DO! effin' Microsoft...

Hey Paul, I think you forgot something. I've said it before and I'll say it again, HD-DVD and Blu-Ray dont matter, Holo-DVD is the next king, even if it's a few more years away then the other two formats.

Yikes. This takes being concise to a whole new level :-) By the time DRM issues are agreed upon with the new DVD formats, they'll be watered down to irrelevance. Who wants to only use their DVD discs in just one machine, never to be played in another player, and have root-kits installed on any PC they're inserted into? DMCA and DRM are just too anti-consumer.

Come on now, it has been up most of the workday and no one has noticed. Oh well, this is hardly new news anyway. They visibly took sides a long time ago, and the MSjuggernaut is probably irresistable. What do you give an 800# gorilla to eat?

The ads confuse me, one moment it's a small 60px wide ad, now it's some huge 336px wide ad, its like the guy who implemented the ads forgot to check the dimensions first.

"Instead, building native Blu-Ray support into Vista was impossible simply because the Blu-Ray specification wasn't finalized early enough to be included in that version of Windows." Huh? You mean the Vista that isn't finalized yet and won't see store shelves until late next year? And yet, "PC makers and other third parties" are expected to do what Microsoft, with all their substantial resources, CAN'T do? LOL...if THEY can do it, Microsoft can, too. What a crock. This has all the odor of a big stinky fish.

Puh-LEEZE! When reports are so far off-base, Microsoft usually responds with the threat of legal action. It rarely just clams up. Additionally, HD-DVD and Blu-Ray have both experienced delays due to DRM issues holding up finalization of BOTH specifications. So the Vista budling reason doesn't seem to hold water, either. One major issue: What will Judge Koller-Kotelly say about this Windows-related pressure on the tech industry? She could seriously rain on Microsoft's underhanded HD-DVD parade. I completely agree with lotsamystuff's comment ... this smells rotten. For the record: I don't have a preference for either format. While I'm looking forward to HD content on demand, I'm not certain that optical discs will be the predominant medium in a couple of years.

"Instead, building native Blu-Ray support into Vista was impossible simply because the Blu-Ray specification wasn't finalized early enough to be included in that version of Windows." What? Vista is still a year away! I bet HD-DVD will have full support in Vista. I hate Sony like the next guy, but I'm with Thurrott on this one. Blu-ray is technically superior. And it's got Dell and Apple behind it, not to mention a little thing called Playstation 3--HD-DVD may as well throw in the towel. I don't understand why Microsoft is backing this inferior format so strongly. I think in their need to control everything, they're being stubborn. Microsoft doesn't need to be making web search engines, and they don't need to be making HD optical formats. Stick with the Windows platform that it all runs on!

In the meantime: "Pioneer Unveils Blu-Ray Drive for PCs" http://www.eweek.com/article2/0,1895,1906041,00.asp Hey, Microsoft...there's plenty of time before Vista is introduced!

Since HD-DVD is cheaper Microsoft simply wants to lower OEM hardware costs so they can charge more for WiNoDOS HastaLaVista when it launches in 2007 with half of the promissed new features!

After the sneaky thing SONY did with its music CDs [the stealth rootkit-like software] I wouldn't touch Blue-Ray. HD-DVD seems the best way to go here.