6 months ago I thought HD-DVD (hereafter simply HD) would win out over Sony's BluRay (BR) for a number of reasons. First, given the outcome of prior format wars, Sony has usually lost. Examples are Betamax and MiniDisc. Secondly, the industry giants backing HD were initially lined up stronger behind them, vs. BR.
That has now dramatically changed. BR is gaining momentum with movie studios, PC manufacturers and many consumers backing its format. MS may the the loser in the console battles of PS3 vs X360 if they include an HD drive instead of BR, if BR is the eventual successor. However, the lifespan of the consoles will probably be about the same time it takes for the format war to declare a victor anyway, and by that time, the next consoles are rolling out with all new hardware anyway--so who knows.
One of the proclaimed advantages of HD over BR was that manufacturing facilities were supposed to be able to use the existing infrastructure whereas BR would not. This would have meant a substantial cost increase for the production of BR discs since it would require new equipment for manufacturing. However, it turns out that the cost difference for making BR vs. current DVD is much less than thought.
Obviously, the huge advantage BR has over HD is capacity. And, let's face it, that's what this whole deal is about--DVD simply doesn't provide enough space anymore for cutting edge programs and HD image content. So more is better if you ask me--despite Toshiba's claim that HD will provide various benefits over BR that will offset the capacity difference. There are some compatibility issues and digital content dealios that are different between the formats, such as allowing purchased content to be copied to a HDD, a feature HD supports, but currently BR does not.
Finally, with Sony incorporating BR in the PS3, as they did DVD with the PS2, that may be the final nail in HD's coffin.
So, although I initially supported HD, I'm now a convert to the BR camp, despite being an avid Xbox/MS supporter in the infamous MS vs. Sony console war. All the aformentioned reasons, plus the fact that ultimately, I'm a gamer first and a fanboy second--that means if Sony makes a better product generation over generation vs. MS, then I'll buy their products. Like I said--a gamer first--so what's best for gaming and the industry is what's best for me, and thus that's what I want. I think the competition is healthy in consoles and software, BUT a format war benefits no one--everyone loses to some degree.
Having said all this, Bill Gates recently stated in a speech at Howard University in Washington, D.C., that this format war will eventually be a moot point because he sees the issue of storage capacity becoming strictly digital in the future. That is to say, everything will be on accessible via the internet and the conglomerate and almost infinite composite storage space it represents. Interesting, eh? Bill didn't come up with this idea on his own--companies and networks have already long allowed access to their content if you agree to let the "network" essentially partition a portion of your HDD that is accessible to the network for storage. Say, 10% of your HDD capacity you donate to the "network" so you can have access to it. With an 80 gig drive, you've given 8 gigs of storage space for the network to use--and this multiplies exponentially for everyone who accesses the network in this way, donating a small portion of their local storage space for access to the full library. Cool, huh?
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