Why Blu-ray Will Never Come to the Xbox 360

Yesterday in an interview with Gizmodo, Microsoft CEO Steve Ballmer was asked if the company had any plans for adding a Blu-ray drive to the Xbox 360 and set the internet ablaze with his response, suggesting that consumers will eventually be able to purchase Blu-ray drives as accessories. Ballmer's comments come after a year's worth speculation and denials from Microsoft as to whether or not they would ever adopt the next-gen disc format after their failed endeavor with an add-on HD DVD drive, so naturally, our interests were piqued. Unfortunately, the glimmer of hope given to Blu-ray fans was stripped away when Microsoft's "Major Nelson" Hryb reiterated that the company has no plans for Blu-ray in, on, or around the Xbox 360, and that Ballmer's comments were in reference to PC accessories.

Despite the mass confusion, it seems Microsoft is sticking to its guns when it comes to Blu-ray and the Xbox 360. Why is Microsoft so staunchly opposed to brining the high-definition disc format to their gaming platform? Is it lingering bitterness from the failure of HD DVD? Hopes for a digitally distributed future? We explore these theories and more.

Convenience or Quality?
Traditionally, the home entertainment industry has thrived on advancements in audible and visual fidelity, but now for the first time, companies have couched quality in exchange for convenience with the advent of digitally distributed media. Although Blu-ray offers the highest quality audio and video available, more and more consumers are warming up to the vast array of readily available digital content offered by services like Netflix, VUDU, and others. While VUDU and others offer high-definition content, there are inherent limitations to digitally distributed media that prevent the format from matching hard copy high-definition formats, such as bandwidth caps, variable connection speeds, and compression. Audio/videophiles will go down kicking and screaming before adopting an inferior format, but a growing market of consumers, especially those who use online outlets like YouTube and Hulu, seem to be more than happy to trade audio/visual presentation for convenience, a fact Microsoft seems to have recognized long before the fall of HD DVD.




In November 2006, Microsoft launched the Xbox Video Marketplace, a service built directly into the Xbox 360 dashboard for the digital distribution of movies and television shows, which later became the launching platform for the company's partnership with Netflix, which added a library of over 12,000 streamable movies and television episodes. In February of this year, only three months after it was launched, Microsoft reported that over 1 million Xbox Live users had utilized the console's Netflix feature. While there is no doubt that user activity for the feature was attributed largely to the free trial offered at the time of the service's launch, it does suggest a large interest in digitally distributed content.

Digital is Cheaper
Despite monthly subscription fees for consumers and huge infrastructure investments for companies, digital media is ultimately a cheaper, faster, and more efficient method of distribution. The process of finalizing, manufacturing, and then distributing media to retailers is a lengthy and expensive process that requires the regular utilization of manpower, production materials, and time, whereas digital services are more reliant on IT and strategic partnerships. Although the cost efficiency of digital media hasn't trickled down to consumers in most cases, there are benefits for consumers beyond the almighty dollar, like, for instance not having to get off the couch, which saves gas, time, and the previously mentioned effort.


You also have to consider the cost of producing and purchasing hardware to support Blu-ray on the Xbox 360. Microsoft would have to design a new add-on drive for the console and you'd have to pay for it. On the surface that seems like a perfectly viable solution; Microsoft likes money, right? Why wouldn't they want your money? Of course they do, but their profits would be offset by the cost of producing, marketing, and distributing such an add-on, thus their strategy of strictly digitally distributed media is a much more profitable solution. Outside of the monetary gains for Microsoft, there is also the question of how much of a value of an add-on drive would be to the consumer. Clearly Microsoft has no intention of adding a built-in Blu-ray drive to the Xbox 360, so what would gamers stand to gain from an add-on? Blu-ray movie playback, of course, but the add-on drive wouldn't be able to play Blu-ray-based games, so what's to stop gamers from just picking up a cheap Blu-ray player?

Microsoft Likes to Play It Safe
There are two prevailing strategies in the tech industry: evolution and revolution. Many manufacturers take the cautious evolutionary route, building upon industry standards and the precedent established by competitors, while others take the plunge and commit to an emerging technology in the hopes that it will ultimately succeed. Microsoft seems to have found a nice balance of both with their strategy with the Xbox 360, building a strong foothold for the digital revolution but holding the door open for hard copy media. With Xbox Live Microsoft has taken a strong step toward a more digitally-enabled future, but should digital distribution for whatever unforeseeable reason fail, Microsoft could easily adopt a new hard copy format with the next Xbox or by revising the current generation.

Blu-ray is Sony's Game
Above all else, let's not forget that the Blu-ray Disc Association, the consortium of electronics giants that launched the Blu-ray format, was spearheaded by Sony. Sony placed all of their eggs in the Blu-ray basket, making it a staple of the PlayStation 3, and won, and although Microsoft later joined as one of the board of directors, it is still a house that Sony, in part, built. Of course that would stop Microsoft from embracing the format for profit, but as we mentioned, there seems to be little monetary incentive in producing an add-on drive.

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