Microsoft: HD-DVD Not Critical to 360’s Success

The fate of HD-DVD is not critical to the success of the Xbox 360, according to senior Microsoft officials, who have noted that the company would consider supporting rival technology Blu-ray if it were victorious in the high-definition format war.

Following Warner Brothers’ decision to defect from the HD-DVD to the Blu-ray camp last week, Xbox hardware group marketing manager Albert Penello told Reuters, "I fundamentally don't think ... this has a significant impact on Xbox 360 versus PlayStation 3."

Penello went on to note that in the previous hardware cycle movie playback capabilities didn’t play a major role in the success of systems.

"With the PlayStation 2, DVD was a big part in the beginning, but over time, people were not buying it as a DVD player after first year or two."

While Microsoft offers a standalone HD-DVD player Xbox 360 accessory, Sony’s PlayStation 3 comes with an inbuilt Blu-ray player.

Penello did add that Microsoft would “have to consider” supporting the Blu-ray format if it emerged victorious, but suggestions continue to grow that Microsoft is far less bothered about the HD format war than initially thought.

In a separate interview, Microsoft chairman Bill Gates told USA Today that, in time, most consumers would access movies via direct download rather than from physical discs.

“The other trend we're seeing is that direct download over broadband — I think the greatest example of that is Xbox Live — (is) becoming an important choice. Over time, that will be the dominant way that people get their movies.”