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

[Jason Dunn]

<div class='os_post_top_link'><a href='http://www.ehomeupgrade.com/entry/1734/why_didn-t_microsoft' target='_blank'>http://www.ehomeupgrade.com/entry/1734/why_didn-t_microsoft</a><br /><br /></div><i>"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."</i><br /><br />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?

[jeffd]

3..there is no NEED.

The only dual layer PS2 games I have seen were xenosaga 1 (and probably 2, I havnt gotten around to getting 2 yet but I so wanna) and thats because a TON of the many cinima sequences are actually streamed rather then real time. Understandably most of the scenes that switch between 2 "areas' rapidly (or show them at the same time, most of the video-communication scenes) are streamed, but apparently pyrotechnics was not a great skill on the programing team so any exploshins were also pre rendered.

In otherwords, the only reason for it filling the entire dvd was bad design, patching up for its incapable programers.

Even the largest high end pc games are only hitting 3-4 gigs. Unless for some freak reason alot of full motion video is needed..and I mean ALOT (wich actually should be needed LESS on the xbox 360 now that it can pretty much do any quality CG in realtime) there should be no reason of going over a dvd-roms maximum storage.

[Felix Torres]

What do you think?

Me, I'm not convinced Sony will ship BluRay on PS3.
Not if PS3 is to ship in early 06.

Folks conveniently forget that the same day Sony announced PS3 as having BD-ROM (at noon) they backtracked by nightfall, at an investor's meeting, saying that it was contingent on parts availability and price.

And for all the talk of PS3 coming in at $495, I don't see Sony going to $599 or higher (possibly killing PS3) just to promote BD-ROM. $0.02.

[Kursplat]

3..there is no NEED.

The only dual layer PS2 games I have seen

If Microsoft was positioning the 360 only as a game machine, you would have a point here. However, the 360 is SOOOO much more to Microsoft (and many consumers) then a game console. And because of that, the drive will become important, but as was pointed out, not anytime soon. The content (movies) have to start coming out in that format first.

[Jason Dunn]

However, the 360 is SOOOO much more to Microsoft (and many consumers) then a game console. And because of that, the drive will become important, but as was pointed out, not anytime soon.

I think high-def DVD drives will be important in the NEXT round of consoles, circa 2008 or so. It will take at least that long for high-def content to get rolling and mainstream. Remember, until Blockbuster/Netflicks/etc. start to rent the content in that format, it's not truly mainstream.

[Felix Torres]

I think high-def DVD drives will be important in the NEXT round of consoles, circa 2008 or so. It will take at least that long for high-def content to get rolling and mainstream. Remember, until Blockbuster/Netflicks/etc. start to rent the content in that format, it's not truly mainstream.

That sounds about right.
Blue laser video is going to lie in the Laser-disk/videophile arena for 06 and probably most of 07. Even after the content starts to flow in enough volume to get rentals going it'll be at least a three-year ramp-up.

And the thing to bear in mind is that MS can probably keep on running the console war at 4 years per generation instead of Sony's preferred 5-6 year cycle.

Unnoticed in the launch is that MS just about breaks even on the core console. This is precisely because of the choice of DVD as the optical drive. By going with a red-laser system MS can put potentially deadly price pressure on Sony, making them "buy" their market share with red ink the way Sony did to MS in the current generation.

The difference being that MS *expected* that red ink and they factored it into their strategy. And, of course, they can afford it, as an investment in the war over the living room.

Sony, at this point in time, can't afford massive losses on the PS3. They need for PS3 to generate revenue and can't afford to sacrifice PS3 profits to drive the ramp-up of BD-ROM in the blue laser format war. Not for any extended length.

The MS strategy is clear: they are *daring* Sony to ship a BD-ROM based PS3. They *hope* Sony does it. Cause they have the choice to *add* a blue-laser equipped XBOX to the lineup, side by side with the core and the hard drive model, or to drop prices on the DVD-based models. As long as the games are comparable on both systems, the optical drive is not going to drive console sales until late 07 at the earliest.
And by early 08 MS will be already laying the groundwork for the next Xbox to follow, neatly catching Sony in mid-life-cycle.
At most, MS would only be vulnerable for one year, 08.

Its all about timing and positioning and Microsoft's timing looks better and better the longer it takes for BD-ROM to launch. If BD-ROM doesn't launch until mid 06 it will be too late to have any impact on the 360/PS3 generation of consoles. And if it slips that far, Sony will likely launch PS3 without it.

[Jason Dunn]

Maybe this is a stealth push for HD WMV.

Could be. Movie trailers on the Xbox 360 in 720p on my big TV are jaw-droppingly awesome. 8O