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Microsoft backed the right "horse"

Microsoft's Neil Thompson says the company has been fundamentally backing digital downloads in the format war

In the format war between HD-DVD and Blu-ray, Microsoft has suggested that it has backed the right horse - digital distribution.

Some industry pundits have suggested that Microsoft backed HD-DVD to promote consumer indecision, preventing a clear "winner" from emerging until digital distribution made the issue moot. In an interview with The Guardian, Microsoft's Neil Thompson didn't refute that notion.

"The horse that we're fundamentally backing is the one that says the future of entertainment content is online digital distribution," Thompson said.

"I would argue that we backed the right horse."

Without acknowledging the Xbox 360 add-on HD-DVD player at all, Thomspon said that in 12 or 18 months time we'll be wondering why people were even thinking about a disc format.

"Our strategy's been developed for the last six or seven years, and ever since we launched the platform [online content] has been our big, big, big bet."

Thompson also stated that the transition from DVD to Blu-ray was much less significant than the transition from VHS to DVD.

"The fact that Sony are desperately trying to deliver an online offering means they probably understand that there's another front they have to develop for," he said.