Yawn. As long as I can play my DVDs I really don’t give a stuff. The fact that the technology/movie industry is moving to yet another format so the collection of DVDs becomes outdated (so they can make more money) is a pretty terrible idea and (hopefully) not too many people will fall for this.
But anyway. There are a number of stories floating around about this great conspiracy idea that Microsoft are stoking up the format wars so that the big M can set themselves up as a HD movie distributor using online downloads. This would imply (if true) the MS is setting themselves up as being the “iTunes” of the HD movies, at the same time keeping movie bosses happy because there would be new user-contracts that mean you no longer have hard copies of movies and they will own what you do with it (new age DRM).
The downsides. HD-DVD and Blu Ray discs can hold 25GB/50GB of data. This means that a HD movie will be at least 20GB (to remain high def). If MS wants people to download HD movies and they even compress the files (reduce quality), the actual size of the movie will still be in GigaBytes. So first off, you will need a large hard drive to store just a few movies. Then you will need to have a decent enough internet connection to have any chance of downloading it (assuming there are no problems with download). Then you still will not actually own a physical copy of the movie - it will take generations to get over the idea of owning something tactile, plus the golden turd being that these downloaded movies will have DRM (haven’t anyone in the entertainment industry figured out that we, the people who buy their tat, want DRM free formats).
By the time everyone gets a Microsoft box to download movies, or hardware that will take such formats and play with no problems, or gets a fast enough hard drive, or just meets the minimum requirements, everyone will have either a HD-DVD or Blu-ray player. So lets file this under the heading “conspiracy - not well thought out”.