Screw Blu-Ray, We’ve Got Digitial

Since the last breath of HD-DVD rumors have been flying about Microsoft’s need (desire?) to get into the Blu-Ray hardware for their 360. The rumor was feasible because Microsoft already spent time working the HD-DVD angle for their “home entertainment” Xbox 360 console.

Although Microsoft’s Shane Kim told Forbe’s, “I can categorically say that we’re not working on a Blu-Ray player for Xbox 360,” there is further proof in Microsoft’s direction: Netflix. From a profit standpoint, Microsoft’s got more to work with in a downloadable digital format with Netflix than they do sending another specification off to manufacturing.

The effort that went into the HD-DVD addon was significant but with risk comes reward, but risk also comes with the chance of failure. Microsoft had to write it off as a failure, do they really need to go through it all again when digital downloads are the future of media? Probably not.

The Xbox 360 is going to be three years old this year, positioning another addon hardware storage player seems like the wrong idea for many reasons:

  • Spend your R&D efforts on the next-generation console, not more fluff addons to compete against Sony.
  • Blu-Ray for movies is still risky, considering the cost of movies in the market (and their slight increase when HD-DVD died).
  • Global adoption of Blu-Ray is still years off

Undoubtedly, Blu-Ray would be a great storage medium for their next-generation console because it could be established as the core storage platform for developers. If the intent is just to play Blu-Ray movies, you’re going to work hard, today, when adoption rates are so low.

Until you can use a Blu-Ray player for both games and movies, stick with digital downloads of movies and retail purchases for games. Maybe next-generation.

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This week, Paul is still not available, which is unfortunate, since the Gaming Flashback is the classic DuckTales for the NES. There’s also a bunch of scintillating news items including:

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We also reveal the winner of the Pixie Diamonds contest.

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Sony’s PlayStation 3 has a 10-year plan. We’ve heard about the plan, we’ve seen Sony’s current execution and we’re starting to see some of the titles making their way to the PS3 for 2009. The Xbox 360? Kaz, Sony Computer Entertainment’s head man, made his thoughts clear when speaking to Official PlayStation Magazine.

kaz“Last time I checked, they’ve never had a console that’s been on the market for more than four or five years and we’ve committed to a ten year life cycle, so you do the math…,” he says. He goes on to state that the Xbox 360 won’t have a larger install base by the end of their 10-year plan has been completed, “unless things go really bad.”

Of course, nobody says Microsoft’s 10-year plan isn’t to push out yet another console. Is that wise? We don’t really know, but you can’t count them out on it. Maybe they’ll only have half the install base but two consoles in the market within the next ten years, nobody really knows.

The one major hole we can see in his comments revolve around their claims that the Microsoft doesn’t have any history of a console being on the market for very long. If I recall, Sony managed to squeek one by on Nintendo with the original PlayStation, which changed everything for the next ten years. Sony didn’t have a 5-year track record when they started taking Nintendo down, why does Microsoft need to have an extensive resume as well?

As for Wii?

“It’s difficult to talk about Nintendo because we don’t look at their console as being competitors. They’re a different world and we operate in our world — that’s kind of the way I look at things…” (kotaku)

Say what you want about Microsoft vs. Sony, but it sure sounds like Sony doesn’t want to acknowlege Nintendo’s success because it casts a dark shadow on their own product. Nintendo and Sony have been battling for years, that’s just the way it is and that’s how the industry sees it. When NPD releases numbers, when journalists write articles about consoles and when the war is finished one thing remains constant: all three consoles are included in the equation.