Let's explore, for now, just the segment of market we would consider to be the "overlap" in the consumer electronics industry- a consumer with an interest in both high definition gaming and movies (and perhaps music). It's obvious Microsoft is attempting to follow the Sony (game console capable of reading HD disc technology) and the Apple models (with the Zune/Zune Store).
Given Microsoft's recent update to the 360 console and Windows Media 11, users have the ability to view movies off their network, or even off their disc drives and memory cards. Something reeks of Zune integration here, not that I'm particularly interested in their handheld device. I also predict that there will be a great deal more video encoded to WMV-HD that will be available in the pirating channels online. But what does this mean for MS? An opportunity that should not go unchecked. MS has opened a Pandora's Box and it would be wise for them economically to set up shop at one end dealing HD content over its Live service. Now I know anyone who has read thus far is probably prone to an eye-roll or chuckle. With a 20GB HD, you'd be lucky to fit a whole movie considering the rest of the information on the drive. But anyone with Live service obviously has their computer hooked up to the network. A subscription-based service that could download your movie overnight on your computer's hard drive could be an easy way to bypass the HD-DVD/Blu-ray debacle and deliver HD content to the consumer without the need for extra hardware. Additionally, with the use of dedicated servers, users could also order near DVD-quality movies on-demand. With Apple doing virtually the same thing, I could certainly see this being an option, only with 360 integration it makes MS's intentions of the 360 as being an extension of the home theater experience much more feasible.
Now, I can hear a lot of people going, "Why would they do this? It seems like a lot of investment without the promise of a decent return? What about their HD-DVD drive? Wouldn't they be competing with that?"
1. Probably the most important reason: Pirates will do it regardless of whether or not MS decides to. They can either decide they want a piece of the pie, or miss out on the opportunity. I think we all know MS better than that.
2. Apple is already doing this to some degree. Movies are decent quality, encoded for the iPod. They could get a leg up on Apple and simultaneously support the 360 and the Zune with better quality video. Adding HD to the mix would absolutely trump any of their offerings.
3. Offering their gamers a library of on-demand dvd-quality titles, HD films that aren't available on HD-DVD for download, and the ability to enjoy HD content without having to buy the add-on would create more value to the existing hardware than the HD-DVD add-on would. Movie buffs who want the ability to view discs they've bought or rented at their leisure could do so by purchasing the add-on. But those who don't want to take the risk could still buy-in to the HD content market. This would offer a unique edge over the competition and fulfill MS's intentions for the 360 device as a piece of home theater consumer electronics.
Overall though, it will be interesting to see what happens. If they don't do some similar plan, they've still provided a backdoor to HD content delivery. I'm almost certain pirates everywhere are encoding HD content as a result of this upgrade (which is a great thing for those of us who know where to look). Be prepared for PS3 fans to be green with envy when the HD content is plentiful and the only avenue to HD movies for PS3 is to rent or buy BD discs. But then again, I could be wrong!
Given Microsoft's recent update to the 360 console and Windows Media 11, users have the ability to view movies off their network, or even off their disc drives and memory cards. Something reeks of Zune integration here, not that I'm particularly interested in their handheld device. I also predict that there will be a great deal more video encoded to WMV-HD that will be available in the pirating channels online. But what does this mean for MS? An opportunity that should not go unchecked. MS has opened a Pandora's Box and it would be wise for them economically to set up shop at one end dealing HD content over its Live service. Now I know anyone who has read thus far is probably prone to an eye-roll or chuckle. With a 20GB HD, you'd be lucky to fit a whole movie considering the rest of the information on the drive. But anyone with Live service obviously has their computer hooked up to the network. A subscription-based service that could download your movie overnight on your computer's hard drive could be an easy way to bypass the HD-DVD/Blu-ray debacle and deliver HD content to the consumer without the need for extra hardware. Additionally, with the use of dedicated servers, users could also order near DVD-quality movies on-demand. With Apple doing virtually the same thing, I could certainly see this being an option, only with 360 integration it makes MS's intentions of the 360 as being an extension of the home theater experience much more feasible.
Now, I can hear a lot of people going, "Why would they do this? It seems like a lot of investment without the promise of a decent return? What about their HD-DVD drive? Wouldn't they be competing with that?"
1. Probably the most important reason: Pirates will do it regardless of whether or not MS decides to. They can either decide they want a piece of the pie, or miss out on the opportunity. I think we all know MS better than that.
2. Apple is already doing this to some degree. Movies are decent quality, encoded for the iPod. They could get a leg up on Apple and simultaneously support the 360 and the Zune with better quality video. Adding HD to the mix would absolutely trump any of their offerings.
3. Offering their gamers a library of on-demand dvd-quality titles, HD films that aren't available on HD-DVD for download, and the ability to enjoy HD content without having to buy the add-on would create more value to the existing hardware than the HD-DVD add-on would. Movie buffs who want the ability to view discs they've bought or rented at their leisure could do so by purchasing the add-on. But those who don't want to take the risk could still buy-in to the HD content market. This would offer a unique edge over the competition and fulfill MS's intentions for the 360 device as a piece of home theater consumer electronics.
Overall though, it will be interesting to see what happens. If they don't do some similar plan, they've still provided a backdoor to HD content delivery. I'm almost certain pirates everywhere are encoding HD content as a result of this upgrade (which is a great thing for those of us who know where to look). Be prepared for PS3 fans to be green with envy when the HD content is plentiful and the only avenue to HD movies for PS3 is to rent or buy BD discs. But then again, I could be wrong!
