January 7, 2008
By Todd Bishop
Las Vegas - One of Microsoft's key technological positions has taken a blow as a result of Warner's decision to choose Blu-ray in the battle over next-generation DVD formats.
The implications extend beyond movies to the hotly contested video-game console market. That's because Sony has integrated a Blu-ray drive into the PlayStation 3.
Depending on the circumstances, Sony may enjoy a "huge competitive advantage" over Microsoft in the video-game console market if Blu-ray becomes standard, said Michael Pachter, an analyst at Wedbush Morgan Securities.
The key question, Pachter said, would be timing.