The video game console is looking like a bigger and bigger part of the war over the next-generation DVD format. Microsoft is backing the HD-DVD format and rival console-maker Sony is building a Blu-ray DVD player into the PlayStation 3 it’s introducing in the fall..
Gates talked about how Microsoft’s Xbox 360 is helping drive greater adoption of high-definition televisions, which are coming down in price, he said. Almost half of Xbox 360 users are connecting their systems to HD TVs, Gates said.
“So between that and the movies and the PC experience being projected onto that screen, we think the HD-DVD volumes are going to go up very rapidly,” he said. The Xbox 360 does not come with a built in HD-DVD player.