• From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 10 Mar 2008 11:23:28 -0400

I was wondering how long this would take. It was very much of a "cutting
off your nose to spite your face" for Microsoft, before this.



March 07, 2008

Microsoft, Sony in Blu-ray-for-Xbox talks

By Paul McDougall

Microsoft and Sony officials are in talks that could lead to a version
of the Xbox video game console equipped with a Blu-ray high-definition
DVD player.

Sony Electronics U.S. president Stan Glasgow revealed the discussions at
a media dinner Thursday in San Francisco, according to an account of the
event published by London's Financial Times. Glasgow said his company is
also engaged in talks aimed at adding Sony Blu-ray to devices made by
Apple, according to the paper.

Microsoft found itself without a high-definition video partner last
month after HD DVD developer Toshiba said it would drop the format.
Toshiba's announcement followed commitments by virtually all major
Hollywood studios to back Blu-ray.

Days after Toshiba formally pulled the plug on HD DVD, Microsoft said it
would discontinue an external Xbox 360 drive that supports the
high-definition movie format.

Microsoft had been selling an HD DVD player as a $129 add-on for the
Xbox 360. Existing units are now selling for less than half of that on

The death of HD DVD puts Microsoft in a quandary. Sony's PlayStation 3
console features a built-in Blu-ray player. With HD DVD no longer
viable, Microsoft needs to find an alternate high-definition format for
the Xbox.

The company could itself move to Blu-ray. But it might also reject its
rival's technology and focus instead on offering high-definition
downloads through its Xbox Live online content service.

Microsoft already sells a limited selection of HD television and movie
downloads on Xbox Live, which boasts more than 10 million members.

In the meantime, Microsoft has said that HD DVD's discontinuation won't
hurt Xbox 360 sales --insisting that it's games, and not movies, that
dictate console sales.

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