Summary
The adoption of the Sony's Blu-ray standard for HD movies is a result of a lesson learned from the video world. Microsoft adopted the new unified standard immediately as this is the basis of its business model - one operating system, one Office environment and one Internet Explorer. However, in this case, it brings benefit to the end user as he now can be worry-free regarding which DVDs to use.
Analysis
The scars left on Sony skin from the BetaMax vs. VHS battle in the video arena, proved to be a learned lesson that wisely deployed by Sony management. Sony, with all its power, wanted to finish the battle as early as possible with as much as little bloodshed as possible. It succeeds and the wave of Blu-ray adoption has climbed high.
Microsoft's immediate decision is clear and natural as its business model is to standardize all computer environment ...per its own standard.
As the giants choose Blu-ray and actually set a death sentence to HD-DVD, Microsoft had to announce it is shifting to Blu-ray. As not so many XBox games distributed till now in HD-DVD, the "damage" is minor compared to what is expected in the Blu-ray. In time of uncertainty, the end user prefer to sit on the fence to see who will be declared the winner. Now, we'll see XBox sales rising up with more variety of games and as a result price reduction towards next summer when the Olymic games open and pave the way to the Xmas shopping season.
Bottom line, it's a good move for the end user who enjoys now one standard , and all companies, including Toshiba, will benefit from increased sales.
