We wrote in a preceeding arcticle abought the plight of Toshiba's HD-DVD format, the launch of which is delayed in Japan upon copy protection issues. Well, today's announcement from HP (NYSE:HPQ) might bring some relief at the Minato-Ku headquarters: HP goes for HD-DVD, and this comes after hey had announced that they were part of the Blu-ray fan crowd.
It looks like "staddling the fence" is an increasingly more popular strategy amongst the Hollywood and IT, or Consumer Electronics specialists. Even if most alliances have been formed and supporters of both camps spend lengthy slide shows to explain why the other side should re-consider, the undecided have a fair inclination to support both, some even stating that they would propose two-standard-equipped devices.
A 30 GB disc next to an HD-DVD reader: are they back on track?
HP had asked something from the Blu-ray guys, in an attempt to reconciliate or at least fill the gap between the two contenders, and it had something to do with customer focussed technology. The HD-DVD Promotions Group is equipping its HD discs with a software, dubbed MMC -for "Mandatory Managed Copy"- that would allow end-users to make legal copies of video content. It makes sense, since not every country strictly forbids such copies: in France, for example, you can burn a CD for the so-called "personal use", and brands have regularly been condemned for strict copy protection practices because, under the personal use jurisprudence, it is illegal. In addition, HP had another request, this time about interactivity, the so-caled iHD. The Blu-ray group has decided to accept the Mandatory Managed Content request only. It is believed that the refusal, by Blu-ray, to accept the second demand has pushed HP in the arms of HD-DVD people.
Maureen Weber, general manager of personal storage in HP’s personal systems group, told Reuters: “If they are unable to incorporate technologies we think are critical for the PC architecture, we’ll be more neutral,” "We’ll think of cost and implementation across the board. Potentially, we could support both HD-DVD and Blu-ray.” Now there are other keys in the game, and that's the PC giants...
It's no mystery: Microsoft (NSDAQ:MSFT) -and, similarly, Intel (NASDAQ:INTC)- have announced they are supporting HD-DVD and that Microsoft plans to make its next OS version Windows Vista (expected in some 15 months), compatible with the HD-DVD optical disc format. That has come at a moment when analysts of all horizons started to predict that Blu-ray was gradually becoming the de facto standard, and it has probably boosted the Toshiba-backed format that everyone thought was losing ground to Blu-ray. Steve Ballmer declared in Tokyo that Microsoft supports HD-DVD over Blu-ray despite Hollywood’s growing support for the latter. He said “We have chosen to support HD-DVD for a number of reasons, including the way and the effectiveness with which we see it integrating with the PC.” In addition to this integration aspect, the already mentioned freedom to make copies was important, as well as the fact that HD-DVD technology is "back-compatible", i.e. can support old and new formats; Moreover, questions of cost and volumes, as well as better compatibiity with notebook PCs, have been evoked. Last, there's the XBox 360, in which Microsoft might install an HD-DVD, following Sony's decision to go with Blu-ray for its latest PSP3.
Blu-ray disc
While many had predicted a full victory for Blu-ray, some analysts had chosen a more cautious approach, based on their perception of the true colour and shape of the market: Green, rectangular, with the portrait of Benjamin Franklin on it, and it circulates very well, worldwide... Wolfgang Schlichting, research director at IDC, has been one of them. “As long as they are not committing large amounts of money, this is about making friends,” he said. “When it comes down to money, then we will see these partnerships change. These arrangements are nonexclusive, so many of them will support both formats if they have to.” Well,see HP...
Others will put the emphasis on the feasibility and industrial easiness of all this, even in the consumer's perspective. HD-DVD seems to be easier to implement, and it is a more an evolution than a revolution, while Blu-ray requires more steps to implement. Its higher density and its ability to store more content is an advantage. Likewise, the content will have an impact, but what content? It is clear that Sony's three studios won't change alliances, while others could back the two formats. As for the PC industry, it looks like HD-DVD is more suited to portability, i.e. notebooks.
So that HP's decision, coming from a company which is deeply engaged in the PC world might be more sensible than a superficial analysis might have led to...
After the Blu-ray concern has decided to make its format complying with the MMC process only, HP Maureen Weber has declared : "We're encouraged that the Blu-ray Disc Association is adopting Mandatory Managed Copy. Because HP wants to deliver the most user-friendly and cost-effective solution to our customers, we have decided to support both formats." She would immediately add: "By joining the HD-DVD Promotions Group and continuing work with the Blu-ray Disc Association, HP will be in a better position to assess true development costs and, ultimately, provide the best and most affordable solution for consumers."
Quite an understatement ...