Microsoft and Toshiba are joining forces to boost HD-DVD.

OCT. 8, 2007 • Microsoft Corp. and Toshiba announce the creation of the Advanced Interactivity Consortium, an open forum aimed at boosting the adoption of the HD-DVD format, as well as delivering “advanced scenarios” to other platforms, such as digital downloads to DVD players, PCs, TVs, mobile phones and game consoles.

Impact: The fight for high-definition storage remains very much alive. What started as a lukewarm embrace of HD-DVD has turned into a spirited campaign for Microsoft. Despite encouraging HD-DVD player sales, the prospect of $399 PS3s sales boosting the Blu-ray capable installed base is likely a good reason to ratchet up HD-DVD promotion. That probably is a good move because it still is an open question how frequently do gamers buy high-definition films to play on their consoles? On the other hand, there’s plenty of evidence to show that HD-DVD player owners are good consumers of HD-DVD movies. Outside of stymieing Sony, however, there seems to be little reward for Microsoft’s active role in HD-DVD adoption.