In response to this week's Blu-ray Disc Festival in Los Angeles, Kevin Collins, director in the Microsoft Consumer Media Technology Group, defended the company's backing of the next-generation HD DVD format.
"The [Blu-ray] camp's claims about Microsoft's desire to have a format war are baseless," Collins said. "Microsoft has over 100 people working on HD DVD interactivity and we believe that HD DVD is the next-generation optical format."
During a presentation to journalists and home theater enthusiasts at the Blu-ray Festival earlier in the week, 20th Century Fox Home Entertainment worldwide president Mike Dunn intimated that the format war is being perpetuated by Microsoft in the hopes of confusing consumers so much they don't support either format and ultimately buy their entertainment online. He didn't mention the computer giant by name, but blasted "the orchestrated campaigns of confusion and anti-consumerism fueled by an 800-pound gorilla that would prefer to force us all into the practice of paying tolls for the right to exchange information and enjoy entertainment."
Collins said Microsoft did not and will not bundle the HD DVD drive in Xbox 360 because the company believes that gamers are first and foremost gamers.
"If you look historically at the attach rates (i.e. the number of DVDs purchased per DVD player) you will see that game consoles have a single-digit attach rate, while dedicated DVD players have an attach rate in the mid-20s," said Collins. "Microsoft knew if we put in an HD DVD drive that we would have to raise costs and disenfranchise our customers (that are primarily gamers) as the unit would become too expensive."