Intel and Microsoft attempt to standardize HD DVD by press release
Tags: Microsoft, Games, Gaming, XBox 360, HD DVD, Blu-ray, Marketing
This article announcing that Intel and Microsoft are throwing their weight behind Toshiba's HD DVD disks hit the wires this morning, and now has various analysts, this one from In-Stat, claiming that it has changed everything:
My reaction was a little different. It was, "Huh? How did this change anything?" Want to follow my reasoning? Just ask yourself the following questions. And just to make it a little easier, I'll provide the answers after the questions.
While that reasoning is a little on the extreme side, the point is still the same. These two products are intended for consumer HD recording and playback. Intel and Microsoft don't really make consumer products other than gaming consoles. And if I look at content providers (e.g., movie studios and the like), Blu-ray is leading HD-DVD. Add in the fact that there are already Blu-ray players and recorders on the market in Japan made by Sony, Samsung, and Sharp, and that Toshiba is considering delaying their HD-DVD introduction in the US until 2006, and this announcement rings a little false.
Our take: HD-DVD's success rides entirely on companies who aren't big players in consumer electronics. Blu-ray is a format that Matsushita/Panasonic, Sony, Dell, Apple, Philips, LG, Thomson, Hewlett Packard, and Samsung all are behind. I believe that the Blu-ray consumer electronics companies have the marketing power and execution to create a de-facto consumer electronics standard much faster than Microsoft, Intel, and Toshiba can, and therefore, Blu-ray will win.
But feel free to make up your own mind: this Engadget comparison between Blu-ray and HD-DVD is one of the best summaries I've seen.
This article announcing that Intel and Microsoft are throwing their weight behind Toshiba's HD DVD disks hit the wires this morning, and now has various analysts, this one from In-Stat, claiming that it has changed everything:
"Microsoft and Intel have tremendous clout," said In-Stat analyst Gerry Kaufhold, saying that their backing would likely give HD DVD an edge over Blu-ray, especially in North America, their strongest markets.
My reaction was a little different. It was, "Huh? How did this change anything?" Want to follow my reasoning? Just ask yourself the following questions. And just to make it a little easier, I'll provide the answers after the questions.
- How many consumer electronics products with optical drives do these two companies sell? I believe the answer to this question is exactly one at present, but will be two next year: Microsoft XBox and XBox 360. To my knowledge, Intel sells no products containing optical disks today, although they do use optical disks in their reference design and prototypes.
- How many HD-DVD units will these products sell? Xbox will probably never be upgraded to HD-DVD. XBox 360 is not currently planned to use HD-DVD, although it could clearly be.
- Will that number of units change the market balance between HD-DVD and Blu-Ray? No.
While that reasoning is a little on the extreme side, the point is still the same. These two products are intended for consumer HD recording and playback. Intel and Microsoft don't really make consumer products other than gaming consoles. And if I look at content providers (e.g., movie studios and the like), Blu-ray is leading HD-DVD. Add in the fact that there are already Blu-ray players and recorders on the market in Japan made by Sony, Samsung, and Sharp, and that Toshiba is considering delaying their HD-DVD introduction in the US until 2006, and this announcement rings a little false.
Our take: HD-DVD's success rides entirely on companies who aren't big players in consumer electronics. Blu-ray is a format that Matsushita/Panasonic, Sony, Dell, Apple, Philips, LG, Thomson, Hewlett Packard, and Samsung all are behind. I believe that the Blu-ray consumer electronics companies have the marketing power and execution to create a de-facto consumer electronics standard much faster than Microsoft, Intel, and Toshiba can, and therefore, Blu-ray will win.
But feel free to make up your own mind: this Engadget comparison between Blu-ray and HD-DVD is one of the best summaries I've seen.
posted by Carl Howe at
3:28 PM
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