Does Microsft Want Market Confusion Re Blu-ray vs. HD-DVD?

Investors' Business Daily (via CNN) says that no winner has emerged from the Blu-ray vs. HD-DVD format war. Although Blu-ray has sold more discs, ongoing studio realignments have continued to muddy the waters. And confusion may serve the interests of some competitors. Citing movie director Michael Bay, the IBD article claims that Microsoft wants both formats to fail until HD digital downloads are perfected:

Movie director Michael Bay in early December complained on his official Web site that Microsoft MSFT is providing financial backing for HD DVD because it wants both high-def disc formats to fail.

"That is the dirty secret no one is talking about," said Bay, director of the recent hit film "Transformers." "They want confusion in the market until they perfect the digital downloads." Microsoft sells HD movie and TV show downloads to its video game consoles through its Xbox Live Marketplace.

Couldn't find the Bay article on his site.

Comments

[adam]

I'm trying to remember now whether it was Ian Dixon or Major Nelson's podcast, but one of them definitely had an interview with a Microsoft employee who said that the format war was pointless, HD video would be on hard drives before a winner was decided.