Blu-ray (Sony) vs. Microsoft over future DVD technology

Microsoft is spreading itself pretty thin these days. Just last week they stopped negotiating with the music companies because they could not bully the record companies around for better terms of digital music. Now, it looks as if the tide is turning from HD-DVD towards Blu-ray after Microsoft starting its FUD (fear, uncertainty, and doubt) campaign against Blu-ray and Sony. That may have back fired and now it looks as if Paramount and Time-Warner are have now decided to back Blu-ray after Microsoft's behavior in the past week. "Dagger Drawn over DVDs", "Warner-Bros gives Blu-ray green light?". Even Toshiba is now changing its position with Microsft about its HD-DVD format after Sony made some big gains with its Blu-ray technology and signing up 11 of the 12 major movie content providers.

In addition to Microsoft's aggressive announcements concerning XBox 360 this past few weeks, it appears that the old FUD machine that Microsoft has successfully used in the past no longer has its luster. The rest of the business world now understands the tactics Microsoft uses to get its way in yielding its power. We'll see in the next 6-12 months how the hi-definition format war unfolds.