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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Said news items include:

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E3 was supposed to be the staging point for the next Bungie bombshell but Microsoft was said to cut it to save time. Bungie had big plans to reveal some stuff they were working on and really take best in show for E3. Was it really cut because of time?

This sounds fabricated, cutting a huge announcement because of time constraints makes absolutely no sense. Imagine a firework show where you cut the grand finale because it would push the show over by a few minutes. Just dropping a title name or a 30 second teaser video would have taken a minute at most, we’re not looking for long winded explanations, just the facts.

Perhaps the real reason was Microsoft had it in their back pocket if people found the Netflix and Final Fantasy XIII news hum drum compared to anything Sony or Nintendo were to show off. Reacting dynamically to the news, perhaps they realized Sony didn’t have any epic announcements and Nintendo just showed up to hint at their future accessories. Microsoft’s haymaker of an announcement wasn’t needed to win the show this year.

Or, maybe the low turn out to the event just wouldn’t build enough hype for Microsoft’s big announcement. They could find a better outlet to turn on the hype and get people jazzed for the next Bungie product. Three years ago there is no doubt Microsoft would have come out fighting with all their weapons; this year Final Fantasy XIII was enough to show consumers that Sony’s lost their exclusives.

After the noise of E3 fades we’re sure to hear more from Bungie. We feel bad for the employees of Bungie who were ready to make the announcements on their work in progress. Sometimes, saving it for later is the best thing you can do; think of the anticipation that will build!

(Thanks, 1up)