Inside Video Games: Microsoft Demos HD-DVD Drive

Microsoft Demos HD-DVD Drive

Xbox360_1 Microsoft senior program manager Kevin Collins had the Xbox 360 HD-DVD drive on display in Los Angeles at the DVD Forum. While no launch date was announced or price point given, Collins said the external HD-DVD would be the most affordable on the market when it ships this fall. Toshiba, which has several stand-alone HD-DVD players on the market today, is manufacturing the add-on for Microsoft. The device is about the size of a hadback book and features two USB 2.0 ports on the back. It connects to Xbox 360 via USB. The Xbox 360 Wireless Network Adaptor can plug into the back of the device, which is upgradable through Xbox Live.

By getting out first in the new console wars, Microsoft has positioned itself to be the frontrunner for the next round. It's lead is likely to remain through next year, while Sony and Nintendo play catch-up and deal with typical launch problems. The one caveat to the early lead is that Microsoft ignored the next generation DVD battle. And that might not be that bad a thing.

Sony has bet the farm on Blu-Ray Disc technology, which is what powers PlayStation 3. Thanks in large part to its PS3, five of the six Hollywood majors have committed to the next generation DVD technology. As long as Sony can deliver PS3 sales that match PS2 sales over the next 10 years, BR-D is likely to win the battle of the new formats. The one major flaw to the plan is the high price point that the BR-D technology warrants, even though the PS3 price will be well below stand-alone BR-D players.

By allowing gamers the option to buy an external HD-DVD drive, Microsoft is hedging its bets. If HD-DVD goes the way of Betamax, it's no big deal. If the format catches on, which many industry insiders doubt will happen, Microsoft can bundle the device down the road. In the meantime, Microsoft is enjoying a lead with Xbox 360 that the competition will need to work to overcome.

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