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February 18, 2008 2:23 PM PST

Why Microsoft will announce an Xbox Blu-ray player soon

Now that Engadget is reporting Toshiba will wave the white flag tomorrow and finally put an end to the high-def format war once and for all, there are a whole new set of questions that must be answered.

Will Toshiba move to Blu-ray? What will the company do with the technology? Will it sell the HD DVD name to the Blu-ray folks?

But perhaps most importantly, what will Microsoft do? The company has been a staunch supported of HD DVD since the beginning and it currently offers an HD DVD add-on for its Xbox 360 console. But now that the format is dead and the rightful winner is ready to be crowned, will Microsoft ignore the format war and go about its business or try to jump on the Blu-ray bandwagon?

Trust me -- within a month, the company will announce a Blu-ray add-on for the Xbox 360.

A month ago, that very assertion would have sounded ludicrous to all but the most cynical of tech followers. But after one short month, quite a bit has changed and suddenly Microsoft is far behind Sony in the HD realm.

Consider this -- the Playstation 3 has officially become the only console that's capable of playing high-def movies and although some may still find some benefit in owning Microsoft's HD DVD player, it wouldn't surprise me if they landed in the junkyard in a matter of minutes after Toshiba announces its failure.

Realizing this, does Microsoft want to look like the loser who doesn't have the functionality to compete? Even worse, won't the Xbox 360 suddenly look like the console that may be able to play games, but can't let you enjoy high-def movies? And now that the PS3 is much closer to the Xbox 360 in terms of price, how many people that are looking for an "in" to the next-gen format would choose Microsoft's console over Sony's?

Of course, Microsoft is quick to say that "games sell hardware" and the death of HD DVD will not have any major impact on its console. And while this argument may hold some water in the short-term, I don't think it can expect its place in the market to remain constant if it doesn't allow its customers to enjoy Blu-ray movies.

But in the end, Microsoft is in trouble. Blu-ray is Sony's and there's no chance that Microsoft can wield any power over the media. To make matters worse, Sony is its biggest competitor in the video gaming space and it'll be forced to pay the piper just to compete. In effect, Sony's win in the format war goes far beyond media.

But all that needs to be thrown out and Microsoft must swallow its pride and pay up. Why you ask? Simple -- if it doesn't Sony will use it as a platform to spew lunacy about how the PS3 is the only "real" next-gen platform and isn't living in the past like its competitors. And although it'll use Microsoft's Blu-ray player as a springboard for other attacks, it won't be nearly as bad as the aforementioned alternative.

And whether you want to believe it or not, Microsoft realizes that it's in a bad position, but it must release a Blu-ray player. In effect, a Microsoft Blu-ray player would allow the company to at least say owners have the ability to play high-def movies and it would eliminate a major competitive advantage Sony could hang over its head.

Of course, time also plays a factor in Microsoft's decision. If it waits too long to set the ball in motion, Sony will have a field day and we'll be left wondering why Microsoft hasn't responded.

Blu-ray is coming to the Xbox 360 within the next month. Trust me, it's Microsoft's only course of action going forward.

Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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Add a Comment (Log in or register) 35 comments (Showing first 20 comments)
by stefonte February 18, 2008 3:06 PM PST
YEAH RIGHT!!!

It aint happening! Why?
1. The High Def format is not integrated in the game play on the 360 like it is on the PS3, meaning it has no effect on game play so 360 folks would rather buy a PS3
2. If the HD player was $200+ imagine the cost of an external Blu Ray, pushing the total cost of the 360 to $900, meaning 360 folks would rather buy a PS3
3. With all the warranty problems, 360 editions (elite, halo, HDMI etc), etc. fans will realize that the PS3 is the future proof machine and they will be buying another 360 in 4 years, meaning 360 folks would rather buy a PS3.

Cause when it comes down to it, video games is the real topic and without blue ray the 360 games (content, graphics, etc) will soon go the way of the dinosaur.

I have all platforms, and I play my DS more than my 360, follow by the PS3 then the Wii
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by robvme February 18, 2008 3:38 PM PST
The author is incorrect in its statement that "Blue Ray is Sony's". Blue Ray is a standard that was co developed by many companys. It is not owned in whole or in part by any individual company. Microsoft could care less as it can already deliver Hi Def via XBox Live. This was the biggest non war ever, completely hyped by the media. iPod has conditioned everyone to recieve their content via online - look to broadband and other online services to deliver most of the content people will watch. We will never see the boom around Blue Ray like we did with DVD in 2000.
Furthermore, if you still beleive people buy game consoles to watch movies, then you have some homework to do. The primary motivator is playing games. the console that can converge with other technology and cable and satellite operators is going to be the big winner, and guess what? That's where Microsoft is headed.
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by obihave February 18, 2008 5:33 PM PST
I agree that Microsoft will ultimately come up with a solution to the Blu-Ray debacle, but providing a player wouldn't be cost effective. They put themselves in this position by not putting a built-in HD player in the 360 to begin with, thus not utilizing the format the way Sony did. The games could have utilized the HD-DVD format even while the movie/media companies went AWOL.

But most people, myself included, will wait for a cheap Blu-Ray player to hit the market and continue to enjoy the games that get released on the 360. I can still get HD movies through XBOX Live, and at some point... convert any of my old movies to HD-DVD or Blu-Ray.

Heck, I can imagine a day when someone comes up with a way to convert Blu-Ray back to HD-DVD. I know the data size difference is an issue, but a dual player or converter is just around the corner. Until then, Microsoft will just have to buy Sony! j/k
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by Shaun822 February 18, 2008 5:55 PM PST
The economic restraint alone dictates that MS will not have an add-on Blu-Ray player within a month. As much as Sony may go ballistic yelling from the roof tops "See we told you." They would have an even better pulpit to preach from when the Xbox Elite plus Blu-Ray is something between 700 and 900 dollars. MS can at least combat the Blu-Ray with its HD downloads via Xbox Live and can still cite the fact that they have more exclusives and a better game library. MS is left with the choice of the least evil, or in this case the situation that leaves them with the least egg on their face and adding a 300 - 400 dollars add on is not that situation.
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by krustykanuck February 18, 2008 6:50 PM PST
Obviously some of these CNET blogs are designed just to ruffle a few feathers. I own a PS3 but I don't own (and won't own) many Blu-Ray movies since their prices are so steep. I also have an XBOX360 but I don't use that machine to paly HD-DVDs. In fin fact I use the XBOX360 more often than my PS3 for gaming.

While I wouldn't mind seeing a Blu-Ray add on for the XBOX360 , it will just be another option available to the users of this gaming unit. They will still have downloadable HD content and regular DVD's (the majority) to as well. The big what IF? is what if Microsoft went with the Blu-Ray format instead of HD-DVD and the results were different (ie if Blu-Ray was not adopted)? Why then the PS3 would have been stuck with obsolete technology.

Sony took a gamble with their PS3 and it looks like they won out this time. But that isn't always the case with Sony products.

Also, if the HD content were so important to gamers then please explain your case about why the Wii in all of its 480i glory is still outselling all the other game units.
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by Renegade Knight February 18, 2008 6:55 PM PST
Content Sells Games.
Sony by putting Blue Ray as a Native Player has more room for Content than both the 360 and Wii.

Xbox has a kludgy add on. I agree they will have another Kludgy add on, Won't have room for content in games on a standard DVD and will have to release an Generation III player long before Sony's PS3's lifecycle is up.
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by sifuwong February 18, 2008 7:02 PM PST
I totally agree with the author. The only way Microsoft can stop the death of HD-DVD from being a big disadvantage for them in the console war is by offering a Bluray add-on, something I'm sure they've been working on since Warner's defection to blu. Now it may be true that in terms of value, the PS3 with its built-in wifi and bluray are more cost effective than buying a 360, wifi adapter and bluray add-on in piece-meal, but what a Blu-ray add-on gives MIcrosoft is a reason for current 360 owners not to have to buy a ps3 if they want bluray movie support. Additionally, with their impressive library of games, it is a compelling reason for prospective buyers to not turn away from buying a 360 just b/c it can't play bluray titles like the ps3. The bluray add-on may not be a big plus for Microsoft, but at least it slows down the momentum from Sony's PS3, which for them might be just as good.
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by tenioman February 18, 2008 7:14 PM PST
would it be possible for the owners of blueray not to allow microsoft to make a blue ray adapter?
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by SuicideNinja February 18, 2008 8:42 PM PST
What people are missing is that electronics history doesn't repeat itself in the same way as everything else. Sure, there was another format war, but the meaning of this war doesn't have the impact of the VHS/Betamax war. The rate of technology change is accelerating, not keeping at a steady speed.

The Mass Consumer already has a video player in the house. The Mass Consumer doesn't have an HDTV, and has been plenty happy with cheap regular DVD. Neither Blu-ray or HD-DVD offers a major convenience to the consumer. VHS offered the convenience of cheap home recording (replaced with DVRs), and DVD offered a crisp picture with no rewinding in a smaller form factor.

These HD discs are the same physical size. They add no convenience whatsoever, yet they cost 2-4 times as much as a DVD, which can be upscaled with decent results. They may offer more "features", but most consumers just want to watch the movie. Only fans of individual flicks will want to delve into commentaries and the likes.

Even with this "victory", the gains will be nowhere near the gains of the past. The demand isn't there yet, and it may take too long for Blu-ray to gain ground before a format with more convenience shows up.
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by redeem4god February 18, 2008 10:14 PM PST
First of all robvme both you AND the author are wrong. Sony began the steps for Blu-ray back in 1995 all by their little lonesome. That is right it is a semantic issue here. Sony is the "creator? or "originator" of the standard but they did not want to go it alone or risk all their R&D funding by themselves so they approached Matshushita and Philips. Just the three of them together created the hardware technology. You see you have the encoding/decoding standard much like ATSC/NTSC uses for DVD/TV's and the hardware technology needed to play the new standard. Sony came up with the standard and the three of them produced the first hardware products. A joint venture if you will.

Yes there are a lot of (pay attention now) what the industry calls backers or what the official website calls "members" these are only the people who support the standard but they did not create it.

As far as Microsoft getting crazy and making the cost of a blu-ray add-on twice as much as the current PS3, not likely. It would defeat the purpose of being competitive. This is MS chance to crush PS3 or at least keep them in 3 place by creating a blu-ray add on so they would financially be shooting themselves in the foot.

As far as Don. Sorry I disagree with your article. While economically it would be advantageous for MS to create the add-on (and I actually hope they do), MS's position has always been one of creating a strong Xbox Live for downloadable content and I for one believe that they want neither format to win in favor of downloadable content. Why not, apple TV has it so why shouldn?t MS get their hands in it? Oh, before anyone tries to pick it apart. If you have done your homework then you know you don't necessarily need a HD Drive to watch a High-def movie ( again i.e. apple TV) you just need the HD decoding hardware/chipset which higher models of the 360 do have which is also why I don't think this will really hit them as hard as Don thinks. However, in the end they either will make the Blu-ray or chose to wait and bring out then next system with it built in. Rumors are already buzzing of possible new systems for both Nintendo and Xbox as early as 2009. Only time will tell.
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by attacksloth February 18, 2008 11:41 PM PST
I would be very surprised if MS did release a Blu-Ray device. It would be a PR disaster. The best my imagination could handle in the near future is the infinitely remote chance of releasing a 'new' version of the XBox360 with an integrated Blu-Ray player. But that too would just make them look ridiculous and would no-doubt hurt the current gen owners a great deal.

MS in the long run will be accused of building the biggest piece of fence-sitting hardware produced in recent years as it really has now offered nothing new. Sony on the other hand have to my mind, once again [PS2] delivered something that will likely become the centre of many a households entertainment. Be that as a games machine or a media centre. So, MS have but one option as I see it, a new machine entirely.

As for the issue of download-able HD content. It comes down to a few things, chiefly your definition of HD. "High Definition" is more than just it's resolution - its the sound, the colour depth, the options... the extra stuff.

I would have to agree overall with those that say there are now some very compelling arguments out there to choose a PS3 over an XBox if faced with that decision...
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by shawakwak February 19, 2008 11:42 AM PST
Gosh all this ridiculous speculation . Blu-ray means nothing to MS. They've said. including any physical HD Drive in 360 was a waste because the future is downloading content and games.

Also. By Christmas Blu-ray players will be $150. Problem solved. If you have an and want bluray buy a player it's that simple. No need for an add on.

Games sell consoles.
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by manoaHI February 20, 2008 1:42 AM PST
MS did care about Blu-ray, and with the pre PS3 announcements of including the Blu-ray, it was a great business decision. With MS throwing in support of HD DVD, they were in a position to kill both off (while they annihilate each other - if it was longer) and offer on-line content, like everyone is saying. Also, as shawakwak has stated, the price of Blu-ray players will come down, since competition will cause that naturally, if the price of the blue lasers come down.

The part many are missing is that my mother and father would rather have their DVD (with upconvert) or Blu-ray (we have a PS3 and a stand alone) over any on-line content, they aren't interested in it. What you have is a number of baby boomers who have no inclination to use on-line content. They can barely record a program on the video recorder or DVR. My in-laws are even worse, when their VHS deck died, they simply threw it away and never replaced it. Cable, DirectTV and even DISH already content overload us.

The quality issue is also off target. If quality was the "winning" factor, then Beta would have won over VHS. What has happened is that Toshiba seems to pick the losing side: I had a friend who had a Toshiba Beta deck. Panasonic picks the correct format. This time around, Panasonic was on the same side as Sony.

We in the US also seem to look domestically too much. When I lived in Japan, the X-Box was a dismal failure. PS3s far outsold X-Box. So that put a huge load of Blu-ray players in Japan and with nearly half the population of the US, and quite a bit of disposable income, the PS3 had prospered. Every one of the X-Box owners that I know also had a PS3, but not the other way around. I know a lot more people with a PS3 (many owned PS2s) and no X-Box. HDTV has a high penetration rate even if Japan must switch to digital in 2011. HDTV content was over the air and over cable about the same time as it was here. Also, HDTV technology that is available there has yet to reach our shores.
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by jpaul4 February 20, 2008 8:36 PM PST
Microsoft is right, it's the games that count. I don't see why they need a Blu Ray player simply to play movies. You can do that by buying a separate player with better interface and doesn't have to be tied down to a 360. Lack of HD player doesn't seem to be bothering the number 1 system, Wii.
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by stormtrooper February 21, 2008 4:22 AM PST
I believe Blu-Ray is second rate,considering that HD DVD was more evident on content and sharing download. The ability to add content to your own personal DVD collection made the format more viable. Although, I do admit the Blu-Ray format has more storage space but has its faults. And if it is to satisfy the general public it has to be a cheaper and more affordable format before the general circulation of a single format has to overcome an overall update to qualify as the better for the winner. The format is largely internet incapable access and firmware is difficult to integrate as updates become available. If there was a problem with playback does companies like Sony really care? I know I had 2 copies of Blazing Saddels which would not playback on the PS3, but the HD-DVD version played back perfectly when I played it on my HD-E1 and my Xbox 360 HD-DVD version. Sony have to fix these sorts of problems before they can even think of calling themselves a satisfactory replacement for standard DVD as well as a decent departure from HD-DVD. I don't think MS should have to adopt the format if there are 3rd parties willing to build add-ons for the system. Many user still have many HD DVD's so I cannot say that I will sell my HD DVD add-on for my Xbox360 because I can use that for the existing titles I have. The reason? The Blu-Ray titles are no improvement over the HD DVD version. Some standard DVD titles Upscale and are viewable without having to purchase an expensive upgrade.
I am certainly not going to shell out another £70 on another copy of the Matrix Trilogy which I purchased in HD DVD format. I have a lot of respect for Toshiba and the way that they have conducted themselves. They have not used their influence on the studios unlike Sony whom own Sony Music and Sony Entertainment which supply nearly all the studios with top titles each year, have in a very underhand way influenced the studios via all sorts of Blackmail over distribution etc if their format didn't get top priority. Toshiba lauched HD DVD in 2006 but Sony's first release of any consideration didn't come until the following March 2007.. The Samsung BP1000 was released Jan 2007 followed by Panasonic's similar offering.
On all offerings Zoom pan and frame was poor and led to mixed feelings on both sides. We all used a Zoom and Pan at sometime to see certain mistakes made on film They are our little use of the medium we may have some control over. But often if a film is in high definition you would expect the detail to be better on zoom and those littel errors made in editting to be exposed or not found depending on how good the editor is. But in general we the Hi-Def users want to see the differences. If there was a better picture on an upscaler would you buy a Blu-Ray player if there was absolutely no difference in detail. Everyone has been uptalking and selling us the user HD over the last 2 or 3 years but not a lot has been evident. I have yet to see a fully blown HD title to completely amase and attract me to HD completely. And frankly HD-Satelite TV here in the UK is disapointment and to only have it up to 1080i makes it slow and any action like sport leaves trails across the screen. Overall the screen offerings are of Old movies that were not made in HD but have been redressed and not lived up to the issue.
Before making judgements on MS or Sony, Judge the format first and what it offers you and what better it could be enhanced to offer you. Don't let any media hype you up to say which is the best and what is better for you. I say wait and see? Only Judge the use and offering after you have experienced them for yourself. Who is someone to judge HD DVD if they have never experienced it on a personal basis and have just favoured SONY from the beginning but hate Microsoft.
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by TalonOfThunder February 21, 2008 8:17 AM PST
I spoke with a MS Gaming regional rep that I happened to catch at a EBGames a couple years ago just before the HDDVD drive came out. She said they were putting out teh HDDVD drive as an external "just in case Blu-ray wins, we can just put out a Blu-ray drive".

I'd look for an external blu-ray 360 drive by Xmas.
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by Xboxpat22 February 29, 2008 11:21 AM PST
Everyone has their own opinions on which game console to buy, so why not wait for the dvd players to drop in price and buy a blu dvd player. If people are that big in to movies and gaming then buy a flippin dvd player. I am a big gamer and movie buff. Only in the last four years have I started to buy movies, but I have decided to stop and just make a list of the ones I want becasue i am waiting for a winner to come out on top. I only have about 2 dozen movies in my collection, but I have a list of about 50 that I will buy once this war is over plus I will go back and rebuy the ones I have in Blu-ray. I own a 360, not a single HD movie and I only use my console to play games. I didnt expect to see walmart make a decision so fast. I figured this war would go on for at least 2-3yrs. By the end of the summer of 2008 I bet we see a blu ray player under $200 or very close to that mark. At that point I will buy a player and start to rebuild my collection of movies.
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by Lumpy27 March 17, 2008 10:41 PM PDT
Well I know why the Wii is doing so good on the market right now...
The system is made for interactive Play and it is cheaper to buy a Wii than it is to go to ***** and get a treadmill.. This system was made for exercise and that was a good choice for Nintendo.
1 of the first and best systems out was made by Nintendo and every one Knows that..

PS3 and Xbox 360 both Have great games.. But my 10 year old son played my Conflict denied ops game and while we were playing said come on MFER you have to keep Up... now thats not good... !!!!!!!

any ways with overweight and Obesity the Wii Decided to do something about it and make an exercise system... and thats the reason they sell so good not only do the Kids want it the Parents want it also.... I LOVE MY XBOX360 I NEVER HAD A PS3 NEVER WILL.. AS SOON AS THE BLUE-RAY PLAYER COMES OUT FOR XBOX I WILL BE IN LINE I just hope Microsoft will give us a Break on the price seeing we are true fans and stuck it out to the end .. THICK AND THIN
Reply to this comment
by Lumpy27 March 17, 2008 10:50 PM PDT
Well I know why the Wii is doing so good on the market right now...
The system is made for interactive Play and it is cheaper to buy a Wii than it is to go to ***** and get a treadmill.. This system was made for exercise and that was a good choice for Nintendo.
1 of the first and best systems out was made by Nintendo and every one Knows that..

PS3 and Xbox 360 both Have great games.. But my 10 year old son played my Conflict denied ops game and while we were playing said come on MFER you have to keep Up... now thats not good... !!!!!!!

any ways with overweight and Obesity the Wii Decided to do something about it and make an exercise system... and thats the reason they sell so good not only do the Kids want it the Parents want it also.... I LOVE MY XBOX360 I NEVER HAD A PS3 NEVER WILL.. AS SOON AS THE BLUE-RAY PLAYER COMES OUT FOR XBOX I WILL BE IN LINE I just hope Microsoft will give us a Break on the price seeing we are true fans and stuck it out to the end .. THICK AND THIN
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by josecaos1 April 2, 2008 1:27 PM PDT
Ohh... come on! Are you serious? CDs are as old fashion as tapes... who listen to tapes or CDs? Havent you heard the news? Everything is supposed to be downloaded that is why Microsoft created the biggest hard drive on Xbox 360 plus offers through live subscription HD movies. Make sure you go to yahoo and find out about the new agreement Microsoft made with a broadcasting company. So, for those who still use a red disk or a blue disk, you better start cutting your "disc" collection and begin with your downloads. Who burn CDs in the computer? No one does that anymore, blue ray is as dead as HD DVD and that is the thruth.
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About The Digital Home

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Don writes product reviews for InformationWeek and is a regular contributor to Processor Magazine. You can visit his personal site at DonReisinger.com or if you would like to email Don with questions or comments, drop him a line at CNETDigitalHome@gmail.com. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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