In an
interview with ZDNet just prior to his CES speech, Gates said the following about the demise of HD-DVD:
Q:
Does Warner's move to support Blu-ray exclusively mean that HD DVD is dead? If so, what does it mean for Microsoft? Obviously, you've been a big supporter of HD DVD.
A: Gates: The last studio announcement was Paramount going exclusively to HD DVD, so there's been some back-and-forth. It's kind of a classic format war. You have to think of what we are doing with our HD-interactive software as being actually neutral to any of these platforms.
The third platform, which I don't think anybody would dispute will win in the long run, is directly downloading over the Internet. That's the way Mediaroom TV works. That's the way Xbox Live works.
We've got more content with Disney and MGM coming onto that. It's been very, very successful. The convenience of not using media--we've seen that in music. iPod, Zune, your phone--that's how you are going to carry your music.
Your collection, it's up in the cloud. Any new device you get, it's there. That will happen for video too. The actual physical-format battle here isn't really, in some sense, that important. But getting the movies so you can access it through any broadband device--that's the future.
Q:
Would you do a Blu-ray add-on for Xbox?
Gates: Third parties can do peripherals for Xbox. Obviously, all of the different optical-drive technologies are supported in Windows. At the core, we are about software and making sure the HD activities get to critical mass.