Timely analyst thought pieces on issues pertaining to digital media, home networks, and consumer electronics.

R.I.P. HD-DVD
Author: Michael Wolf, Research Director, Digital Home
Tue, 19 Feb 2008 15:48:59 EST

While some say the death of HD-DVD was all but sealed when Warner Brothers announced just before CES this January they would move their high definition optical disk distribution entirely to Blu-ray, I think, as I said back in June of 2007, that the death knell for HD-DVD was actually when Blockbuster announced they'd go mostly Blu across the U.S. Don't get me wrong, the HD-DVD folks had their chance to snatch life from the jaws of death before the Warner announcement, but I think by and large the decision of Blockbuster started the momentum in the direction of the Blu-ray camp.

What should be interesting now is to see how much of a kick the overall HD industry gets. Early returns are that sales of HD screens have already begun to see increased momentum since the announcement. It will also be interesting to see if Microsoft announces any Blu-ray support for the Xbox 360. Microsoft's support of HD-DVD has always been somewhat suspect in my opinion as a way to confuse the market and resist handing an immediate win to Sony's Blu-ray (and the PS3), but now that the fat lady has sung I think that Microsoft would be smart to come out with a version of the 360 with a Blu-ray player. The PS3 is going to see some significant acceleration from those looking to get an entry level Blu-ray player, and Microsoft is going to have to deal with seeing themselves fall into third place in the console market wars for this year.

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