Digital Home Thoughts: Microsoft to Pay up to OEMs For Using HD DVD

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Friday, December 30, 2005

Microsoft to Pay up to OEMs For Using HD DVD

Posted by Jeremy Charette in "NEWS" @ 06:00 AM

http://digitalcameras.engadget.com/2005/12/29/microsoft-to-pay-up-to-oems-for-using-hd-dvd/

"Microsoft must apparently have a lot more at stake in the success of HD DVD than we realized, since apparently they're said to be offering up "coupons" -- or certain cash incentives -- to manufacturers who use HD DVD drives in their future machines. According to the EE Times, Microsoft is also making HD DVD support "free" in Vista, whereas they're charging up to $30 in licensing for Blu-ray support."



Several columnists and writers have recently expressed surprise at Microsoft's vigorous support of HD DVD. They all seem to be forgetting one thing: the HD DVD compression standard is based on Microsoft's Windows Media Video (WMV) format. Microsoft stands to make a sizable sum of money from the HD DVD license. Therefore, they have a vested interest in making sure it succeeds in defeating Blu-Ray. And believe me, they will. Microsoft does not enter any market with the expectation of losing. Just look at the losses they've taken on the Xbox division over the past five years.

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