The Console Wars: Why Didn't Microsoft Ship the Xbox 360 with an HD-DVD Drive?

Tuesday, December 06, 2005

Why Didn't Microsoft Ship the Xbox 360 with an HD-DVD Drive?

"'We keep hearing that Sony will have Blu-ray support in its upcoming PlayStation 3. And various tech pundits and content distributors keep touting that Blu-ray will be the eventual winner in the next-gen DVD battle, due in no small part to PS3's aggressive future adoption. So, why didn't Microsoft ship their new game console with an HD-DVD drive as standard (HD-DVD drives for PCs have been on the market since November) and get a leg up on the competition? Remember: Microsoft has publicly announced that they back HD-DVD as their high-definition DVD format of choice.'

My own opinion on this is that the answer is twofold: first, the cost. Microsoft is already losing $130 or so on every Xbox 360 that comes off the line, and adding an HD-DVD drive would further add to the bleed. Second, there's still no content, and thus, no reason to sink their teeth into the format. The tech world is all hot and bothered about the next-gen DVD format, but the rest of the buying public could care less - and they won't care for a few more years, if that. I think Microsoft made the right move. What do you think?" [link]

¶ D.Vader // 12/06/2005 06:29:00 PM // PermaLink

Anonymous
Hmm, what a strange post, Bill Gates only last week said that DVD Would be the last physical format, and that there was no need for Blu-Ray.

Personally the differences between the 2 medias arnt that great really are they?

I work in a retail game store and in my humble opinion as soon as they introduce another new media the customers suffer with yet another price hike, i mean £50 a game is already a ******* Joke

Anonymous
I think it's the smartest decision. Right now it's pointless.
There are no HD-DVD's out there. I realize it's nice to have a pre-emptive strike, but it's needless right now. The vast majority of games fit within 1/2 of a DVD's capacity.

I'd suspect they're also waiting to see how people accept the new technology. DVD was already a VERY solid standard when the PS2 hit. Blu-Ray and HD-DVD are below the infancy stage right now.
It's different timing.
HD-TV still isn't in the vast majority of households. Without it - there is NO benefit to a format beyond normal DVD's anyway. DVD movies typically don't fill a whole commercial DVD most of the time, yet they STILL have 2-3 disk sets just as a marketing point to sell "special" editions.

I agree with Gates that physical media won't last much longer. I certainly think we'll see one more iteration of DVD's or something similar...but with high speed so prevalent and newer delivery and storage methods coming every day...the writing is on the wall for the next 5 years. Why lose more money per console when you have a vision (and capability using Xbox Live) to do something a step beyond?

If HD-DVD were to catch on, it won't be for at least another 18 months. DVD took 2 full years to really get much support...and the PS2 came out a full 4 years after DVD was made readily available.
Different timeline this time around.

The 360 paralells the Dreamcast in many ways, but people are going overboard with that comparison. Keep in mind that in nearly every console era - the most powerful system with "new and innovative technology" did not win. If you look at release timelines, the first to market has been the winner in all but the most recent years, too.

The timeline on the new formats is a VERY new wrinkle. Again, people are going on and on about HD and Blu-Ray...but there's absolutely no actual software or films for either.

Anonymous
Quote "I think it's the smartest decision. Right now it's pointless."

That is why PS3 is releasing next year with after Sony and Toshiba introduce their new High Def discs. They are not just going to throw the PS3 out there and say "You have to wait next year to use your Blu-Ray Drive". We just have to see what the electrionic giants have in store.