Microsoft to Sell XBox For HDTV

[dkennedy]

Microsoft's XBox For HDTV: Fuzzy Future

The new console will transmit high-def video, but will struggle to gain acceptance.

March 28, 2007

By Phillip Swann, tvpredictions.com

Microsoft next month will sell a new XBox 360 that can display High-Definition video downloads on a high-def set.

The XBox 360 Elite, which will be launched on April 29, will be available for $479.99.

The set-top will come with a 120-gigabyte hard drive and HDMI port and cable. Microsoft says the console can store games, songs and high-def movies and TV shows downloaded from its XBox LIVE web site.

The company says the XBox 360 Elite will meet the growing demand for more high-def content, with HDTVs now in roughly 30 million U.S. homes.

"Today's games and entertainment enthusiast has an insatiable appetite for digital High-Definition content," Peter Moore, a Microsoft vice president, said in a statement.

The XBox 360 Elite's hard drive will be detachable, meaning consumers can store content once it's been downloaded. Additional hard drives can be purchased for $179.99 each.

Owners of the $399 XBox 360 20-gigabyte model will be able to buy the hard drive and attach it.

The new console will compete with a variety of emerging HD-based products such as Blu-ray and HD-DVD players, Apple's new Apple TV and MovieBeam.

At $479, Microsoft will struggle to make XBox Elite a success. Just ask Sony, which has experienced disappointing sales with its PlayStation 3, which starts at $499 because it has a Blu-ray player inside.

Plus: While high-def owners want more content, they are unlikely to shell out $479 on a new device that includes a technology (online downloads displayed on a TV) that is foreign to most. At least with a HDTV DVD player -- or the PS3 -- people are familiar with the concept of playing a DVD.

However, if the video quality is good -- and the lineup is large -- the XBox Elite might find a small niche with the high-def elite.

[dkennedy]

Is Microsoft Retreating From HD-DVD?

Company may be sending signals that it's hedging its bets in the format war.

March 30, 2007

By Phillip Swann, tvpredictions.com

Microsoft has arguably been the leading supporter of the HD-DVD format, other than Toshiba, the company behind the technology.

The software titan has added a $199 HD-DVD attachment drive for its XBox 360 video game console and it even has an employee (Kevin Collins) with the title, "Director of HD-DVD Evangelism."

However, in the last week, Microsoft has taken steps that have led some to speculate whether it's hedging its bets in the Blu-ray vs. HD-DVD high-def disc war.

First, Microsoft unveiled its new XBox 360 Elite game console that can play high-def movies downloaded from the XBox Live Marketplace.

However, the console, which will be available next month for $479, does not include a HD-DVD player, unlike Sony's PlayStation 3, which has a Blu-ray player inside.

With a price tag comparable to PS3's entry point of $499, it's surprising that Microsoft also did not match Sony's high-def player feature.

The omission might seem unimportant if Microsoft Europe's senior regional director did not make some news this week as well.

In an interview with GamesIndustry.Biz, Neil Thompson discounted the progress of the high-def disc market, but left open the possibility that XBox 360 could support Blu-ray at some point.

“I’m not sure the market has moved to High Definition (movies) yet,” Thompson said. “And if and when it does, then the way that we’ve constructed the offering we’ve made means we’ll be able to go whichever way we want.”

Presumably, Thompson's remarks reflect the thinking at Microsoft headquarters. In recent months, Blu-ray player and disc sales have easily outpaced HD-DVD and many industry observers are concluding that Blu-ray could be reaching the stretch drive.

“Whatever format wins it is highly likely we will offer a solution," Thompson said in an interview with the BBC. "The only debate is if you want to watch Blu-ray movies and pay the extra money for that feature. We prefer to offer the consumer choice.”

The question now is: Will that choice soon include Blu-ray?