Microsoft Pulls Out Of HD-DVD

Microsoft surprised no one this past weekend when they followed Toshiba out of HD-DVD’s house. The party is now officially over for the 360. Microsoft will continue to support the HD-DVD add-on’s warranty and service the peripheral, but no more will be manufactured. We hear they’ll be dropping in price, and that would be an insult. Yes, you bet on the wrong horse but that doesn’t mean you should entice the suckers of the world to buy your now cheap drive. And believe me there are plenty of people who will think a $50 HD-DVD drive is worth the money.

Microsoft has also reiterated their statement that this will have no impact on the 360. I’m not certain that is true. The Marketplace system could become a better alternative for gaining HD content, but the fact remains that there’s a perception out there now. With the failure of HD-DVD, and Microsoft’s adamant support of the format, many consumers may see this as a weakness for the 360. I’m not claiming that’s a fair assessment, but a lot of those people taking out the credit card to buy a console are not gamers. They are parents and grandparents (or if you’re lucky, your wife) who purchase these things. If it’s heard through the office gossip network that Microsoft has a “bad drive,” there could be problems.

In the end I personally doubt this will matter much. The important factor is the high def format war is finally over. Let’s just rejoice in that.