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Microsoft's Greenberg: Lack Of Blu-ray Part Of Digital Strategy

by Annette Gonzalez on Mar 16, 2010 at 11:02 AM

Blu-ray was named the victor of the media storage war some time ago, with some folks going as far as saying lack of a Blu-ray drive will hurt the Xbox 360 in the long run. Games are getting larger and now we're seeing more 360 games span multiple disks. Still, Microsoft's Aaron Greenberg says when costs are involved, lack of a Blu-ray drive is a move in Microsoft's favor.

“We’ve just taken a different strategy. Sony bet on the physical disc, and there are costs associated with that,” said Greenberg in an interview with Edge. “The fact that we’re able to offer a console starting at $199 is a benefit of not being burdened with that cost. Being $100 cheaper is part of the reason why we’re nearly twice their installed base.”

Part of this strategy involves focus on digital distribution, he said.

“For us, our bet was on digital distribution, that that was the future – the ability to do 1080p movies with no disc, no download required; we have the largest movie and TV library, the largest HD library of any console,” Greenberg continues. “Sure, there are trade-offs, but the convenience of pushing a button and watching a movie instantly is, we think, pretty appealing. The great thing is that we built the heart of the Xbox 360 for continuous innovation. We can always add more features and functionality, and you don’t have to buy new hardware to do that. You can do it through software updates. So someone who buys a 360 today can know that one, two, or three years from now they will get a whole variety of new experiences that make it better through Xbox Live. That sort of thing has never existed before in our industry.”

What do you think? Will lack of Blu-ray and push for digital distribution save or hurt the 360 in the long run?