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[Izzy]

Very interesting read.

Every July, 400 of the most powerful media and tech industry chieftains meet at investment banker Herb Allen's conference in Sun Valley, Idaho, for what are usually convivial discussions of megatrends and megamergers. But this year, Microsoft (MSFT ) Chairman Bill Gates III laid into Sony (SNE ) Chief Executive Howard Stringer, according to two sources, including one who witnessed the exchange in a private room.
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Gates argued that Sony's new high-definition DVD standard, called Blu-ray, needed to be changed so it would work smoothly with personal computers running on Microsoft's Windows operating system. Stringer and two lieutenants defended the technology, insisting Blu-ray would work fine in PCs.

Yet Gates's ire only grew. "There must be something much deeper going on," Stringer said later, according to another person who heard the comment. A Microsoft spokesman acknowledges that Gates and Stringer talked at the conference, but says things did not become "heated."

Microsoft at first stayed out of this tug-of-war. Instead, it focused on selling its software to both sides. The Toshiba camp first agreed to use a piece of Microsoft software, its VC-1 code, that squeezes content onto the disk, then decodes it for viewing. Then, in September, 2004, the Blu-ray backers adopted this chunk of code as well -- in exchange for a public pledge of neutrality from Microsoft. "We wanted them to join us," says an insider who is close to the Blu-ray Disc Assn. "But we compromised on neutrality."

That neutrality has unraveled over the past year, as Microsoft increasingly came to see Blu-ray as a risk to its fortunes. In May, Sony confirmed that it would include Blu-ray in the new PlayStation game console beginning next year. Microsoft's Xbox wouldn't have such capability. Then on June 15, the Blu-ray camp decided against using Microsoft's IHD technology to add interactive features to Blu-ray disks, opting instead to stick with software based on Java technology.

CRISIS MODE. Once warner started to waver, Paramount Pictures decided to move first in order to negotiate better terms, according to Hollywood insiders. On Sept. 23 one Blu-ray insider saw preliminary contracts written up by Warner Bros. and Paramount to join the Blu-ray board. "It was all going to happen in a day or two," says the source.

Leaked to Microsoft, the news put the company in crisis mode. Execs began working the phones, lobbying retailers about the potential for mass consumer confusion if competing standards came to market. Concerned, CEO H. Lee Scott of Wal-Mart Stores (WMT ). personally telephoned Stringer and Walt Disney CEO Robert Iger, two Hollywood sources say. Finally, Microsoft issued its joint statement with Intel. Microsoft declined any additional comment for this article.

And much more at Businessweek.

 

[Mihail]

Hot damn, this is much more exciting than console wars. I will have to pick this issue up.

 

[DarienA]

Old

 

[sprsk]

Who is scared?

 

[Mupepe]

Suprised? Personally, I thank them I don't want either format. Both can die in hell until at least 2007

 

[Izzy]

Who is scared?

Can you edit the topic title - it should be Businessweek, not Buisnessweek. Damn typo. ;-\

 

[Mrbob]

First Kuturagi and Allard. Now Gates and Stringer? Things are heating up.

Suprised? Personally, I thank them I don't want either format. Both can die in hell until at least 2007

Don't buy your PS3 till 2007, then.

BTW, what does die in hell man, anyway?

 

[snatches]

Suprised? Personally, I thank them I don't want either format. Both can die in hell until at least 2010

Fixed.

 

[genjiZERO]

Suprised? Personally, I thank them I don't want either format. Both can die in hell until at least 2007

Why? Blu-ray is compatible with current DVDs. If you're plannng on getting a PS3 you aren't loosing anything. You don't have to update your DVD library.

 

[mrklaw]

MS moved *after* they heard that Warner and Paramount were shifting their positions?

If they argued to walmart etc that two formats are bad, surely the studios moving helps that - albeit in blurays favour. Its precisely MS and Intel's move that is pulling things back into equilibrium.

Is Gates bored not having the Justice Department up his ass? Maybe he wants some more

 

[Orin GA]

Ill support who ever sells the cheapest RW disc. SHouldnt this be in OT by the way?

 

[Dr_Cogent]

Sorry, OT, Who is that in Mupepe's avatar?

 

[Izzy]

MS moved *after* they heard that Warner and Paramount were shifting their positions?

If they argued to walmart etc that two formats are bad, surely the studios moving helps that - albeit in blurays favour. Its precisely MS and Intel's move that is pulling things back into equilibrium.

Intel is wavering, though.

Blu-ray support hinges on disc copy, says Intel
By Martyn Williams, IDG News Service MacCentral
1 hour, 21 minutes ago

Intel Corp., which last week expressed support for the HD-DVD format for high-definition video discs, is open to also supporting the rival Blu-ray Disc format should its backers commit to allowing the copying of content from discs onto home multimedia servers, an Intel executive said Tuesday.

“The reason we provided support for HD-DVD is that basically it has committed to several features. Specifically, the mandatory managed copy,” said McDonald.

“We have not heard an unequivocal statement from the Blu-ray camp to say that you’ll be able to have mandatory managed copy without any kind of complications and any kind of issues. So we could be thrilled if they were able to deliver a similar commitment,” McDonald said. “The opportunity is for Blu-ray to unequivocally commit to having exactly the same consumer friendly features.”

Intel’s statement of support doesn’t mean its technology won’t work with Blu-ray Disc. Like other technologies the company will build the technical support required for the format into its chipsets and devices, he said.

Link

 

[SolidSnakex]

Sorry, OT, Who is that in Mupepe's avatar?

Charlotte Church

 

[Borys]

Microsoft bullying everyone else around?

CAN'T BE

 

[CosmicGroinPull]

Microsoft bullying everyone else around?

CAN'T BE

:lol