March 6, 2008

image FT.com is reporting that Sony is talking with Microsoft about the possibility of Blu-ray drives on the Xbox 360. This could come in two forms, of course — a new SKU with an integrated Blu-ray drive or an external drive similar to the one Microsoft offered for HD DVD. The case is tough for either one, though.

If Microsoft thought there was value in adding a high-definition or high-capacity disc format to the 360, it had a choice of two during its development before Microsoft had kicked HD DVD evangelism into high-gear. Of course, after Microsoft did that, it still didn’t add an internal HD DVD drive to the 360, citing concern about not forcing such a drive on consumers. Especially now, with a significant title library out there, it doesn’t make any sense to add cost to a home console. The 360 is clearly competitive as is.

Then there’s the external drive scenario. It made more sense for Microsoft to offer an external drive when there wasn’t much choice for HD DVD drives at retail. Microsoft was able to deliver a low-priced option by piggybacking onto the console. While I’m sure an add-on Blu-ray drive for the 360 would cost less than the standalone players out there, there are many more companies offering Blu-ray players, and now that there is no direct format rivalry, the number is bound to increase while the average prices decrease, further removing the incentive. Without an evangelism imperative, Microsoft can now focus on other means of getting high-definition video to its game console.

Are there any Xbox 360 owners out there who want an external Blu-ray drive for their console?

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January 2, 2008

Microsoft Xbox HD-DVD player

Rumors are circulating that Bill Gates will announce in what may be his final CES keynote that Microsoft will add HD-DVD to the Xbox 360. Microsoft has presented arguments against doing so in the past, offering that game players should not have to pay for a technology that they don’t need. At the same time, though, Microsoft has gone upmarket with the the 360 Premium configuration, and the addition of a larger hard drive contributes no more to the Xbox gaming experience as an HD-DVD drive would. Microsoft has already reduced the price of the external drive; an integrated one would be a logical next step as the component costs have come down.

There’s also the factor of how many external Xbox HD-DVD drive buyers would have preferred to have the internal drive rather than add another box to a crowded home theater, or how many are resisting purchasing an external drive for that reason. Furthermore, while the tie ratios of Blu-ray movie titles to the PlayStation 3 can be debated, there is ample evidence that many PS3 buyers are purchasing at least a few movies, and the HD-DVD camp simply can’t ignore the high volumes of the PS3 Trojan horse. Integrating an HD-DVD drive into at least one 360 Premium configuration is an opportunity for Microsoft to put its machines where its mouth is.

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