Our plan continues to focus on high-definition experiences. Xbox 360 has a great ability to deliver those through the Xbox Live (online download) service. It's a great way to get the high-definition concept because it's right there. There's no additional media. There is nothing you need to purchase.

If you look at the Blu-ray player market, you haven't seen the acceleration everybody expected (since the demise of HD DVD). It's not as much about whether all the content is in a Blu-ray format or a HD DVD format. You have to look at how fundamentally compelling the difference is between a progressive scan DVD player and the picture that it can produce and what you get on a high-definition player. The reality is there is some difference, but most people look at it and say, "I am not going to pay extra for that."

There is nothing to even talk about [Blu-ray Xbox 360 plans] right now with regard to the next generation. That is so far out that there isn't anything to talk about.

Also in the interview, Bach states that there is "no real projection" on when the next Xbox iteration will be introduced. While adding that the company is always thinking about the future versions, Microsoft simply doesn't have anything to discuss at the moment. "The last generation for the Xbox was a little short because we entered the market a little bit later in the cycle," says Bach. "I suspect this time the cycle will be a little bit longer for us."

Robbie Bach Interview [SFGate Thanks, Ben!]

Thanks to all who sent this in!

Eds Update: Konami has taken down the clip. Hit the jump for screens and rundown of the conversation.

On the Codec, Otacon tells Snake:

Otacon: Hold it, Snake. Time to change the disc. I know, I know... It's a pain. But you need to swap Disc 1 for Disc 2. You see the disc labeled "2"?

Snake: No.

Otacon: Huh? Oh, wait! We're on PS3tm system! It's a Blu-ray Disc. Dual-layered, too — no need to swap.

Snake: Damn it, Otacon, get a grip!

Otacon: Yeah, what an age we live in, huh, Snake? Wonder what they'll think of next!

It's funnier when, you know, they say it. That, and when Konami Digital Entertainment doesn't take down YouTube clips of them saying it.

The announcement would apparently be timed to upstage Apple's Worldwide Developer's Conference which kicks off an hour later in San Francisco. Here's the full rumor from CrunchGear's tipster:

I’m told MS will upstage Apple with a Monday 9am PDT announcement (1 hour before WWDC) via press release that the Xbox 360 will get Blu-Ray before Christmas. Price was “under the current Elite," but i could get any more details.

We'll be pursuing this tomorrow as our means of pursuit are limited today. Carry on.

MS to release Blu-Ray drive on Monday[CrunchGear]

Stringer also admitted the PlayStation 3 had been "on life support for a while," but told the event attendees that things were looking rosy for the console now - promising a boost for the PS3 thanks to Grand Theft Auto IV and titles coming down the pipeline that he says will make good use of the PS3's processing power.

He also talked about how PS3 helped Sony win the Blu-ray war:

After Stringer credited the PS3's Blu-ray drive with the format war victory, the Journal's Walt Mossberg said to him, "I thought you you won that battle because you paid the studios more than the HD-DVD group did."

"We were not in the check-writing competition," Stringer told Mossberg, citing support from Disney and other studios.

Sir Howard Stringer, Chairman and CEO, Sony - D6 Highlights [All Things Digital]

SCEE: LittleBigPlanet Delayed, Not Coming Until October
Killzone 2 Dated for 2009
Resistance 2 will Feature Eight-Player Co-Op, 60-player Multiplayer
Motorstorm 2 Gets Named, Detailed
Gran Turismo Racing Academy Announced
Sony Gamers Day UK Info Dump: Resistance 2 to SOCOM Confrontation
Men In Black Becomes First International BD-Live Title
Episodic Siren Blood Curse Hits PS3 This Summer
Sony Brings Indie Music to PSN via Movement
Europe Getting MGS4 Bundle After All
SCEE Plays Up Social Gaming At Gamer's Day 08
PlayStation 3 Outsells 360 In Europe
Mirror's Edge In Motion

"SPHE is delighted to bring BD-Live to International markets for the first time," stated Matt Brown, EVP, International, SPHE, "This follows a successful launch in the US in March and is just the start of the exciting possibilities that will soon be available on high definition Blu-ray Disc."

PlayStation Day '08 Men In Black To Be First Blu-ray Title With BD-Live For International Market

London, (06/05/08) - Sony Pictures Home Entertainment (SPHE) announced today that it will launch its first BD-Live enabled Blu-ray title outside the US market, with the release of Men In Black in selected international territories* beginning 16th June 2008.

This release follows the recent Blu-ray Disc Profile 2.0 software update for PLAYSTATION®3 (Version 2.20), which made the PS3™ the first Profile 2.0 Blu-ray player available on the market.

Blockbuster hit Men In Black will bring network connected features to international territories for the first time. These features include a BD-Live multi-player Interactive Trivia Game, as well as exclusive downloadable theatrical and home entertainment previews and a FAQ about BD-Live functionality.

Men in Black follows the exploits of agents Kay (Tommy Lee Jones) and Jay (Will Smith), members of a top-secret organization established to monitor alien activity on Earth. The two MiB find themselves in the middle of the deadly plot by an intergalactic terrorist (Vincent D'Onofrio) who has arrived on Earth to assassinate two ambassadors from opposing galaxies.

"SPHE is delighted to bring BD-Live to International markets for the first time," stated Matt Brown, EVP, International, SPHE, "This follows a successful launch in the US in March and is just the start of the exciting possibilities that will soon be available on high definition Blu-ray Disc."

BD-Live allows consumers to experience a variety of network connected options. In addition to exclusive content, BD-Live titles can enable an exciting slate of next generation possibilities, such as ring tones/wallpaper downloads, peer to peer interactions, live events and gaming activities.

BD-Live titles are compatible with the latest Profile 2.0 BD players. These models also support Blu-ray's "Bonus View" picture-in-picture feature that was available on previous Profile 1.1 BD players.

# # #

It won't be the first time we've heard talk about Microsoft gloming on to the format, as the DigiTimes recently pegged manufacturer Lite-On as a Xbox 360 Blu-ray drive maker and Sony executives hinted that its competitor was feeling Blu to the Financial Times. MS CEO Steve Ballmer recently went on record about the move away from HD-DVD, saying the company will "support Blu-ray in ways that make sense."

Microsoft PR, of course, continues to beat the digital distribution drum and deny the existence of a BRD playing 360. We would of course be shocked to learn that something slipped from the airtight walls of Microsoft early, so we're sticking with unconfirmed rumor at this point.

The EDN report also mentions that a price cut for the Core (Arcade) version of the 360 is planned, but doesn't provide further details on timing or adjustments.

和碩 獲藍光Xbox 360訂單 [Economic Daily News - thanks, Dutch!]

With an estimated 85% of Blu-ray playing devices being PS3s, Wilson says that those invested in the format should maybe concerned that owners of the console may actually be playing games on it. That's clearly trolling, Steve! Are you implying there are no PlayStation 3 games?

Analyst: PS3 a Crutch to the Blu-ray Market [Next-Gen]

The horse that we're fundamentally backing is the one that says the future of entertainment content is online digital distribution. I would argue that we backed the right horse... If we're sitting here in 12 or 18 months time, we'll be saying 'why were people even thinking about a disc format when it's really about digital distribution?' Our strategy's been developed for the last six or seven years, and ever since we launched the platform it [online content] has been our big, big, big bet.

"No. Lite-On is not manufacturing Blu-ray drives for Xbox 360. As we have stated, games are what are driving consumers to purchase game consoles and we remain focused on providing the largest library of blockbuster game available.

Microsoft: Lite-On NOT making Blu-ray drive [TechRadar]

The sources told DigiTimes that Xbox 360 Blu-ray drives manufactured by Lite-On would cost Microsoft $95-$100 a pop—a significant margin higher that their current DVD drives that run $18-$20. Especially with Sony in a unique position to limit supply of some Blu-ray drive components, this could mean that Microsoft's Xbox 360 would once again cost more to produce than Microsoft recouped in sales.

But if said scenarios is true, DigiTimes is overlooking on option in Microsoft's playbook.

Given that Microsoft has no qualms with different SKU pricepoints, a Blu-ray drive could easily be added to an Elite, or even an Elite Blue (or something) without altering Microsoft's bottom line on other models of 360. Of course, the Elite runs $450 and we can't believe that Microsoft would release a 360 with Blu-ray for more than a PlayStation 3. (Sure, maybe they would, but who really knows?) So could a $399 Elite be on the way with Blu-ray support? Dunno.

But no matter what, Microsoft has to be making more on their Elite than any other SKU they offer. Because that 120GB hard drive does not cost them $100 to make. And such profit margins would give them a little room to breathe with Blu-ray pricing.

Blu-ray Xbox 360s may sell at a loss, say Taiwan makers [DigiTimes via Maxconsole]

It's not merely "laziness" or the result of multi-platform lowest common denominator programming, even games like Gran Turismo 5 Prologue come equipped with a 12 minute install. So, what's the deal?

MTV Multiplayer explores the various reasons behind hard drive installs of game content, pointing out that some developers of multi-platform titles aren't catering their data structures to the Blu-ray format, opting to dump the DVD on the newer, Sony backed spec. That oversight in optimization may be contributing to your longer load times and, in some cases, explain required installs. The PS3's Blu-ray drive only reads at one speed, another contributor. There's more to be learned at the original report.

Does it suck? Yes. Would I rather have shortened load times, regardless of the install? Oh, most definitely. You mad? Let us know in the comments.

The Mystery Behind PlayStation 3's Sometimes Mandatory Installations [MTV Multiplayer] [Image Credit]

Additional geek note: said future blu console will feature a 170-watt power supply. Exciting! We'd remind you again that this is all still considered rumor to the nth degree, but you're old pros by now.

Lite-On developing BD-ROM drives for Xbox 360, sources say [DigiTimes]

Unfortunately due to some last minute technical difficulties, we were unable to publish the new content to the PS Store yesterday. We are working to resolve these issues and will let you know as soon as new content is posted.

Authors David Mercer and Peter King write that Europe will be the largest market for Blu-ray players—they do love their PlayStations—with the US and Japan placing and showing.

I just got No Country For Old Men on Blu-ray in the mail from Netflix, which is also probably not that interesting unless you're getting Blu-ray royalties. Or you're a stalker.

SCEA contacted us today to let us know we were right to doubt, the Playstation 3's firmware 2.20 update will not include Portable Copy support, despite reports to the contrary.

Too bad, I'm about to go away on a trip for a few days and was thinking I might be able to bring some movies with me. Of course, I'm also still confused about whether all Blu-ray movies will be copyable or if it will be only for movies that have an extra PSP file included on the disc.

Portable Copy will give Playstation 3 and Playstation Portable owners the ability to buy a Blu-Ray movie, insert it into their PS3 and download a standard res version to their PSP.

While this would be pretty exciting news the fact that Sony has yet to mention it will be on this latest firmware update leaves me a little dubious about the whole thing. We know it's coming, I'm just not sure it will be with this firmware.

I guess we'll know soon enough, when the firmware hits.

PS3 Firmware Update Enhances Blu-ray Capabilities [PC World]

UPDATE: Turns out the rumors were wrong. Portable Copy isn't coming with 2.2.

Those stuck with HD-DVD players getting gift cards {CNN.com - Thanks, Robert]

Microsoft says no Blu-ray for Xbox 360 [Reuters, via Game Pro]

It may not have had the best response from critics, but the masses and Roger Ebert seemed to like it. And he knows what's what. Any huge Hitman fans picking this one up?

While Ballmer says that Microsoft has "moved on" from HD-DVD and that "we'll support Blu-ray in ways that make sense" that could mean support stops and starts at drivers for Windows Vista. Of course, it could also mean that Sony senior execs weren't fibbing about a potential Blu-ray capable Xbox 360. Won't some kind time traveler tell us what the plan is?

Ballmer lets out his inner Monkey at Mix08 event [Seattle Post Intelligencer]

While Sony brass may have spilled the beans on a possible 360 revision, Microsoft reps were quick to place doubt on the report. Next-Gen quotes a Microsoft spokesperson as saying "There are no plans to introduce Blu-ray" today, instead reiterating the company's focus on games. Someone's not being truthful here about Blu-ray playback. And if we can't trust high level Sony executives or PR representatives, who can we trust?

Sony, Microsoft discuss Blu-ray for Xbox 360 [Financial Times]
Microsoft Downplays Blu 360 Talk [Next-Gen]

Kojima: For us, we're not still not satisfied with the quality we can do. You know, there's not capacity space.

Interviewer: Wait, wait a sec. Saying there's not enough capacity, are you talking about Blu-ray?

Kojima: That's correct. There's not enough space at all. (laughs) ...There's not enough space. We always talked about where to cut and what to compress.

I'll start with the admission that I am one of the early a-duh-pters that has the HD DVD add-on for the XBOX 360. That doesn't make me a MS fanboi, I would instead describe myself as an evil-company-hateboi. And if you want proof that I'm not in MS' camp just talk to me someday about Vista and its wonderful support of earlier versions of Office.

There are several reasons that the death of HD DVD sticks in my craw.

1) HD DVD was far more consumer-friendly.

* It's region-free. The spec does not have Region coding, allowing for my purchase of titles from anywhere in the world. I could watch German scheisse videos featuring Cartman's mom to my heart's content.

* It's easily upgradeable. An ethernet port is mandatory in the HD DVD spec. The majority of stand alone Blu-ray players don't have ethernet which not only limits interactive features but more importantly complicates upgrade issues. Something the early adopters will be realizing once Profile 2.0 (BD-Live) is widely released.

* AACS (onerous copy protection) is optional in HD DVD but required in Blu-ray. This should come as no surprise to anybody familiar with Sony and their bootkit rootkit bonanza rewards.

Although none of these features may matter to you, the underlying principle of being consumer-friendly should. Sony simply doesn't get it and frankly I feel that they don't care.

2) Who the hell decided "one format to rule them all?"

Yeah. I actually have heard of Betamax but I've also heard of Macintosh, Firefox and Linux. Simply put - choice is good for consumers. I recognize that there are additional costs to the studios in authoring more than one format but in the scheme of things this is a negligible cost.

The excuse that consumers wouldn't get off of the fence until the "format war" was over is a self-fulfilling prophecy. I can guaran-damn-tee you that the fence is where I'll stay firmly entrenched next time around.

3) My last beef is far less tangible but still valid to me and that is this bully-ish concept of Sony declaring that if we didn't like their rules then they were going to take their ball (read: movie studio) and go home.

I recognize that I'm painting Sony with a very broad brush (as I type this on my snazzy Sony VAIO laptop sitting in front of my gorgeous Sony XBR2-60" TV) and that's not my intent. But faulting "Sony" is less cumbersome an attribution than to the conference room full of pointy-headed-asshats who were behind this consumer unfriendly move.

So while my 360 will rely heavily on downloaded movies and videos from XBL the HD DVD will still live on in my house in the 40-ish movies that I currently have and the (hopefully) $10 movies to come in the following months.

HD DVD, I hardly knew ya.

Interesting factoid: Before Sony released the PS3, HD DVD occupied 64 percent of HD format sales, and now Blu-ray accounts for 65 percent. The ironic bit: While Sony built up big Blu-ray support with the PS3, it doesn't solely own the technology. Sony must split royalties with other members of the Blu-ray association like Samsung and Panasonic — the same members Sony is battling with for market share! Says Morgan Stanley's Tokyo-based analyst Masahiro Ono:

Sony's Blu-ray hardware business model isn't very profitable. Even if it's profitable next year, we can't expect a high margin.

The emergence of Blu-ray as the de facto high definition standard is one more reason why PS3 is a great value to consumers...The combination of strong sales, Blu-ray dominance and widely-anticipated games all point to 2008 as a breakthrough year for PS3.

Toshiba will begin to reduce shipments of HD DVD players and recorders to retail channels, aiming for cessation of these businesses by the end of March 2008. Toshiba also plans to end volume production of HD DVD disk drives for such applications as PCs and games in the same timeframe, yet will continue to make efforts to meet customer requirements. The company will continue to assess the position of notebook PCs with integrated HD DVD drives within the overall PC business relative to future market demand.

This decision will not impact on Toshiba's commitment to standard DVD, and the company will continue to market conventional DVD players and recorders. Toshiba intends to continue to contribute to the development of the DVD industry, as a member of the DVD Forum, an international organization with some 200 member companies, committed to the discussion and defining of optimum optical disc formats for the consumer and the related industries.

Toshiba Announces Discontinuation of HD DVD Businesses

19 February, 2008

Company Remains Focused on Championing Consumer Access to High Definition Content

TOKYO—Toshiba Corporation today announced that it has undertaken a thorough review of its overall strategy for HD DVD and has decided it will no longer develop, manufacture and market HD DVD players and recorders. This decision has been made following recent major changes in the market. Toshiba will continue, however, to provide full product support and after-sales service for all owners of Toshiba HD DVD products.

HD DVD was developed to offer consumers access at an affordable price to high-quality, high definition content and prepare them for the digital convergence of tomorrow where the fusion of consumer electronics and IT will continue to progress.

"We carefully assessed the long-term impact of continuing the so-called 'next-generation format war' and concluded that a swift decision will best help the market develop," said Atsutoshi Nishida, President and CEO of Toshiba Corporation. "While we are disappointed for the company and more importantly, for the consumer, the real mass market opportunity for high definition content remains untapped and Toshiba is both able and determined to use our talent, technology and intellectual property to make digital convergence a reality."

Toshiba will continue to lead innovation, in a wide range of technologies that will drive mass market access to high definition content. These include high capacity NAND flash memory, small form factor hard disk drives, next generation CPUs, visual processing, and wireless and encryption technologies. The company expects to make forthcoming announcements around strategic progress in these convergence technologies.

Toshiba will begin to reduce shipments of HD DVD players and recorders to retail channels, aiming for cessation of these businesses by the end of March 2008. Toshiba also plans to end volume production of HD DVD disk drives for such applications as PCs and games in the same timeframe, yet will continue to make efforts to meet customer requirements. The company will continue to assess the position of notebook PCs with integrated HD DVD drives within the overall PC business relative to future market demand.

This decision will not impact on Toshiba's commitment to standard DVD, and the company will continue to market conventional DVD players and recorders. Toshiba intends to continue to contribute to the development of the DVD industry, as a member of the DVD Forum, an international organization with some 200 member companies, committed to the discussion and defining of optimum optical disc formats for the consumer and the related industries.

Toshiba also intends to maintain collaborative relations with the companies who joined with Toshiba in working to build up the HD DVD market, including Universal Studios, Paramount Pictures, and DreamWorks Animation and major Japanese and European content providers on the entertainment side, as well as leaders in the IT industry, including Microsoft, Intel, and HP. Toshiba will study possible collaboration with these companies for future business opportunities, utilizing the many assets generated through the development of HD DVD.

"We do not believe the recent reports about HD DVD will have any material impact on the Xbox 360 platform or our position in the marketplace. As we've long stated, we believe it is games that sell consoles and Xbox 360 continues to have the largest next-gen games library with the most exclusives and best selling games in the industry. We will wait until we hear from Toshiba before announcing any specific plans around the Xbox 360 HD DVD player. HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room along with playback of the DVD movies they already own."

The company said it will continue to sell HD-DVD products for a while but will stop further development of HD DVD. Meanwhile, it said its DVD factories in Aomori Prefecture, northern Japan, would be closed.

Market observers said that Toshiba could suffer a loss of hundreds of millions of US dollars.

Ouch, if it's true.

Toshiba plans to withdraw from HD-DVD production [NHK] and Toshiba to give up on HD DVD, end format war [Reuters]

"We've listened to our customers, who are showing a clear preference toward Blu-ray products and movies with their purchases."

Wal-Mart will continue to sell HD-DVD products in the coming months, but expect to be Blu-ray exclusive soon with a heavy shift happening in the next thirty days. Add to that this week's announcement of Netflix's Blu-ray exclusivity and you've got what looks like an end in sight to the format wars.

Wal-Mart on Blu-ray bandwagon [CNN Money]

We can't wait until we stop having to pretend to care about the format war, but anticipate the thousands of submissions featuring Xbox 360 HD-DVD add-ons repurposed for homemade Gundam suits and whatnot. Someone's probably in the process of gutting an NES and stuffing it in the thing right now.

Netflix, Citing a Clear Signal From the Industry, Will Carry High-Def DVDs Only in Blu-ray Format [Netflix - thanks, everyone!]

Xbox 360 HD DVD Player price drop (now US $129.99) [Xbox Live's Major Nelson - Thanks Scott!]

"The main reason is the success of Sony's PlayStation 3 machine. Because it plays Blu-ray discs, there are over three quarters of a million homes in the UK that can view the new high definition format."

Woolworths backs Blu-Ray format over HD DVD [RetailBulletin via GamesIndustry]

For Blu-ray, optical disk drive recording playback slimline design [Sony via Gizmodo]

Though HD-DVD backers may still limp along in their support or fanboyism of a movie format, this "war" couldn't look any more like one camp has won at this point. It's all over but the crying, blanket clutching and Michael Bay gloating, it seems.

Blu-ray could win high-def battle [Variety]