Fate of high-def DVD may lie with Microsoft

Sean Mota

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EE Times
(12/26/2005 9:00 AM EST)
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MADISON, Wis. — After months of intense wrangling between the competing Blu-ray and HD-DVD groups, the battle lines in the war over a next-generation high-definition DVD format have moved to the doorstep of Microsoft Corp.

Several industry sources last week told EE Times that Microsoft is muscling into the optical-disk fray by leveraging its operating-system clout to bundle HD-DVD within Vista, the company's next-generation OS. There is also talk that the software giant may be planning to offer cash incentives — in the form "coupons" — to system vendors or retailers if they agree to support HD-DVD. Such coupons would provide "credits" or "memos" for each PC that is sold with HD-DVD inside.

Many consumer electronics companies in the Blu-ray camp are scrambling to figure out, respond to and possibly preempt the next move by the world's largest — and richest — computer software maker.

Microsoft would neither confirm nor deny such reports. Asked about financial incentives the company might be dangling in front of PC OEMs to lure them into the HD-DVD camp, a spokesman said, "Microsoft doesn't comment on the details of meetings we've had with our partners."

One fact, however, is hard to miss: In the short span of two months, Microsoft has gotten through to Hewlett-Packard Co. HP, which still sits on the board of the Blu-ray Disc Association and previously supported the Blu-ray format exclusively, joined the HD-DVD Forum earlier this month. This semi-reversal came in the wake of a series of meetings with Microsoft, said Maureen Weber, general manager of HP's Personal Storage Business.

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