Asked if the recent move by Warner Bros. to shift allegiance to Sony's Blu-ray meant the demise of Toshiba's HD-DVD, Gates gave a bit of a sly response when you consider that Microsoft is an HD-DVD ally.
"There has been a lot of back and forth," Gates said. "The announcement before that was Paramount putting exclusive support behind HD DVD. HD DVD did well over the holidays."
However, Gates took a big turn and swung the topic to what he hopes will be Microsoft's answer to the format war.
The other trend we're seeing is that direct download over broadband I think the greatest example of that is XBox Live (is) becoming an important choice. Over time, that will be the dominant way that people get their movies.
Is this a sign of a weakening bond between the Xbox 360 and HD-DVD as Microsoft ups the ante on downloadable movies via Xbox Live? We'll see.
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