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CES: 2008 - Microsoft's Xbox: Coming Soon With HD-DVD?

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Old 01-01-2008, 11:04 AM   #1
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Default CES: 2008 - Microsoft's Xbox: Coming Soon With HD-DVD?

Microsoft's Xbox: Coming Soon With HD-DVD?
Posted By:Jim Goldman
Topics:Earnings | Consumers | Retail Sales | Video Games | Information Technology | Bill Gates | Technology
Sectors:Retail | Software and Computer Services | Software | Technology
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Companies:Sony Corp, SNE | Microsoft Corp

CNBC.com
--------------------------------------------------------------------------------

Sources I'm talking to at the company suggest that an announcement could come soon that Microsoft Microsoft CorpMSFT
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[MSFT 35.6 --- UNCH (0%) ] will unveil a new version of Xbox 360 featuring a built-in HD-DVD player and HD tuner. The device might be officially unveiled during Bill Gates' keynote at the upcoming Consumer Electronics Show in January, which could be a bummer since it misses this upcominhg holiday shopping season.

It's true you can already play HD-DVD's through the Xbox but you need another device to plug in. Microsoft sells that player for $179, but it's not clear that the new Xbox360HD will simply be $179 more than the current Xbox 360 without it. Consumers might be getting a break if they buy the all-in-one unit.

I haven't heard pricing yet: details to come. But the blogs are all over this. Several analyst firms I talked with this morning say an HD version of Xbox wasn't expected until mid-to late 2008, so anything earlier would be a surprise.

All the hub-bub began with a story in the Australian publication, "Smarthouse," after comments it had gotten from an executive at Toshiba. But The Seattle Post-Intelligencer says no new Xbox is coming after what sound like pretty definitive comments it had gotten from Microsoft; that maybe Microsoft will license its technology to Toshiba for a new kind of all-in-one player/recorder/game-player/HD thingy. Intriguing.

We've placed several calls into the company seeking official comment. Some folks are looking into it; others haven't returned the calls yet. But the folks I'm talking to off-the-record say an announcement is coming.

This could be a big deal for both Microsoft and the HD-DVD movement. Microsoft has already seen a significant pop in Xbox console sales in the wake of the Halo 3 release. In fact, some market research suggests that sales have tripled normal volume. That makes sense since as we've reported there are about 2.5 million Xboxers still playing the game on older consoles, who have not traded up to the new 360. Halo 3 was widely expected to get them to do so.

At the same time, back at the Digital Life Expo, we detailed how HD-DVD was outselling Blu-Ray on laptops by better than 8-1. It stands to reason that laptop users who have onboard HD-DVD would also want that same format at home.

Now that Microsoft is making it even easier for consumers to use the format in such a popular game-player, this is more bad news for Blu-Ray, and of course its primary backer, Sony SONY CORPSNE
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[SNE 54.3 --- UNCH (0%) ] , which makes that competing platform available in PlayStation. All of this becomes much more important in Microsoft's grander plan of using the Xbox to invade the living room. A kind of Trojan Horse. An all-in-one digital entertainment hub masquerading as a game-player.
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Old 01-01-2008, 11:12 AM   #2
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MS probably hit a break even point a couple of million players ago on there XBOX 360. I was surprise that they only drop the price on it $50 a couple of months ago. Probably I can see them getting ride of the elite and droping all console another $50 but the new elite (with HDDVD) saying the same price or I can see them licensing the XBOX name to toshiba to make it like the Panasonic gamecube in Japan. Well the good thing is we dont have to wait till the Jan 7 to found out

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Pre-show Keynote Address
6:30 p.m. Sunday, January 6, 2008, The Venetian, Palazzo Ballroom

Bill Gates
Chairman, Microsoft Corp.

Under Bill Gates’ leadership, Microsoft has continually advanced and improved software technology. With the full attention of the consumer technology world, Gates has previously used the International CES to preview products and technology on the horizon for consumers. Microsoft’s previous product debuts at CES include consumer technologies and services such as the Xbox, Tablet PC, eBook, Microsoft TV and Windows Vista.

Gates general admission seating process: The International CES will be instituting a new seating process for general admission to the Gates keynote only. The queue for general admission to the Gates keynote opens 2 p.m. Sunday, January 6, on level 2 of The Venetian at the bottom of the escalator outside of the Venetian business center. Attendees arriving before 2 p.m. will be turned away until the line officially opens. Each person will be provided a wristband on a first-come, first-served basis and directed to wait in line. All attendees must be present to receive a wristband. Attendees arriving after all wristbands have been distributed will be informed that general admission seats are filled and will be turned away from the keynote.

Attendees with wristbands must stay in line to ensure their seat in the theater. The wristbands serve as a means to confirm who has been in line for the duration and to eliminate any potential “seat savers.” It does not serve as a ticket or other guarantee allowing someone to leave and return.

Are you a member of the media or an analyst? Get your keynote admission information here.
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Old 01-01-2008, 11:15 AM   #3
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That would be pretty awsome. Here is another story I just saw on this ,

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RUMOR:from Kotaku.com 12/31/07

Gates to Announce DVR 360 at CES?

Bill Gates might be making an Xbox 360 2.0 announcement at his CES keynote swan song, the Seattle Times' Brier Dudley predicts in a column today.

While I'm not totally on-board with his prediction for Gates' 360 announcements at CES this weekend, I agree with the main thrust. Dudley believes that after doing some inevitable crowing Gates will wow the crowds with an announcement that Microsoft is preparing to license the 360 platform to select consumer electronic companies.

In particular, Microsoft could work with Toshiba to develop a digital video recorder with a hard-drive, high-definition HD-DVD drive and Xbox gaming capabilities. They're already allied against Sony and other backers of the Blu-ray DVD format, and Toshiba could help Xbox finally penetrate the Japanese market.

Microsoft could also make a splash by announcing plans to give the Xbox 360 an internal HD-DVD drive, putting it on par with Sony's PlayStation 3 that has a built-in Blu-ray drive.

Last edited by Baron79; 01-01-2008 at 11:34 AM.
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Old 01-01-2008, 11:35 AM   #4
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This is what I always talked about. An xbox 360 with an internal HD DVD-ROM can do wonders. I just hope it's reliable in terms of hardware and also passes lossless audio (even PCM is enough).
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Old 01-01-2008, 12:34 PM   #5
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I would buy one of those if they were to be released. My 360 got the 3 red lights this morning
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Old 01-01-2008, 01:09 PM   #6
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So, who is the first to eat crow about the PS3 not needing a next-gen optical drive?

Not me.
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Old 01-01-2008, 01:14 PM   #7
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As long as it doesnt cost more then the 80GB PS3 I think it could sell very well. Also I believe that most of the people from the 250k HDDVD XBOX addon would probably trade in there XBOX 360 and HDDVD addon for one a XBOX 360 2.0. Then you would have XBXO 360 and HDDVD addon at gamestop or EB Games used for cheap probably selling even more. Of coursed selling those products used MS wont see any money on them but those HDDVD addon will get into the hands of new people. Man I wonder what Michael Bay has to say if this is true. HAHAHA
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Old 01-01-2008, 01:20 PM   #8
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I doubt Microsoft would sell this unit for more than the PS3 80Gb...that would be counter to previous price plans to beat the PS3 at the wallet. I've held off on an Xbox but this may get me to finally get one for the kids.
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Old 01-01-2008, 01:29 PM   #9
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Originally Posted by kamspy View Post
So, who is the first to eat crow about the PS3 not needing a next-gen optical drive?

Not me.
It wont be used for games. If Microsoft introduces this model, it will be only another SKU added to the rest. All the games will be published on DVD-9s and HD DVD version will only play movies (or maybe Twin Discs for games but thats highly unlikely for Microsoft to produce two versions of one game because of costs and uselessness).
Simply put, that drive wont have any effect on the gaming side of X360.
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Old 01-01-2008, 01:45 PM   #10
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Originally Posted by DVD+RW View Post
It wont be used for games. If Microsoft introduces this model, it will be only another SKU added to the rest. All the games will be published on DVD-9s and HD DVD version will only play movies (or maybe Twin Discs for games but thats highly unlikely for Microsoft to produce two versions of one game because of costs and uselessness).
Simply put, that drive wont have any effect on the gaming side of X360.
That's my take it on it as well. The storage capacity of the HD DVD disks will not be used for gaming during the rest of the 360's lifespan.

Next generation, it's almost certain that they'll use a bigger storage medium.
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Old 01-01-2008, 01:58 PM   #11
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Originally Posted by DVD+RW View Post
It wont be used for games. If Microsoft introduces this model, it will be only another SKU added to the rest. All the games will be published on DVD-9s and HD DVD version will only play movies (or maybe Twin Discs for games but thats highly unlikely for Microsoft to produce two versions of one game because of costs and uselessness).
Simply put, that drive wont have any effect on the gaming side of X360.
This should be fun. So do we count a HD-DVD 360 as a SAL because there is no reason to own one except to play movies on top of games? Cant wait for the debate on attach rates for a PS3 and HD360 and how many are used for what.
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Old 01-01-2008, 02:00 PM   #12
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This should be fun. So do we count a HD-DVD 360 as a SAL because there is no reason to own one except to play movies on top of games?
Well apparently it will also include a DVR, so it isn't just HD DVD playback with this new SKU.

If this thing is priced right, I may "upgrade" myself... Assuming this does come to fruition.
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Old 01-01-2008, 02:10 PM   #13
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This should be fun. So do we count a HD-DVD 360 as a SAL because there is no reason to own one except to play movies on top of games? Cant wait for the debate on attach rates for a PS3 and HD360 and how many are used for what.

Well that's hard to say.
I think Microsoft will add DVR functionality and more digital media features (such as Dual Tuner) in order to make people justify the purchase. I mean if it is just a regular 360 with HD DVD, it's doesn't do anything special then other than X360 + HD DVD add on(maybe more quiet and lossless audio). So adding more features along with HD DVD will be a good reason to sell this system.
Per above, some one buying this system may not be only interested in HD DVD part of the system so I do believe we can't completely put it in the same league as standalones in terms of attachrate. However because there are X360s available without HD DVD drive to purchase, I think we can safely conclude that the attach rate will be higher compare to PS3.
As for Microsoft denying the rumor, well they kept denying HDMI and price drop too so not much emphasis can be put on Microsoft's official word.
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Old 01-01-2008, 02:56 PM   #14
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Microsoft needs to release an XBOX 360 w/ built in HD DVD player so they can compete with Sony in all fronts. I think we will hear something about this at CES 2008

The Add-On is a SAL player, because you are buying it just for HD DVD playback.
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Old 01-01-2008, 03:08 PM   #15
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Microsoft needs to release an XBOX 360 w/ built in HD DVD player so they can compete with Sony in all fronts. I think we will hear something about this at CES 2008

The Add-On is a SAL player, because you are buying it just for HD DVD playback.
I'm all for an X360 with internal HD DVD-ROM; I think it's needed and it will definitely help boost the sales on software side.
However IF the player offers capabilities such as TV recording, there are others who might buy it for anything other than HD DVD playback. But the attach rate will be definitely higher than PS3.
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