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This post is part of the reason I think that optical media will not be the dominant factor in terms of media and content delivery.

This section will focus on how the video game industry is helping with this format war.

Microsoft and Sony are currently fighting to see who will come out on top, in terms of who owns the living room.

Sony has a lot of money in it’s new Blue Ray format so this is a battle that they can’t lose, remember the UMD, minidisc, betamax?

Sony is bringing a lot to the table in terms of hardware to make sure that they’re format wins (PS3 is amazing from a hardware standpoint, especially for the price).

Now if I just wanted a very cheap Blue Ray player then I would get a PS3 without even thinking.

With the PS3 you get a next gen gaming system and Sonys new format with a bunch of extras for the price that is steep for a gaming system but not for a piece of hardware like the PS3.

What they don’t give you is the software, yet.

As of right now Sony doesn’t have a hit game yet.

Metal Gear Solid should be on it’s way and that should move some units but as a gaming machine the PS3 is a joke.

Microsoft on the other hand is a software company which just so happens to be owned by the worlds richest man.

The Xbox 360 is cheap when compared to the PS3 in terms of hardware but when it comes to software there is no contest.

The Xbox 360 is the best overall next gen gaming system hands down and it’s all because of what Microsoft allows you to do with a box that sits in the living room.

The ability to watch play games on and offline, stream media from your pc and interact with people for 50 dollars per month.

The software is also very simple which is pretty huge considering the fact that it’s Microsoft (if you must know I currently own a Macbook but I’ve been a Windows user for at least twelve years).

Scenario:

Two companies competing for your living.

Company one is a hardware company that has been a trend setter.

Company two created the definition for the phrase “Software Company.

“Company two runs more than 90% of it’s industry and forces others to adopt their rules and pay for it.

Company two also has the ability to throw money at anything that it needs to take over a new market, the success rate for company two is extremely high.

Company one has a brand name like no other and has always been considered a trend setter but doesn’t have the best track record when it comes to pushing their own format.

Company two has competition coming from all sides (software, search, gaming) and is fighting a multiple war front, BUT the pockets run deep.

Company one has tried to push formats before and haven’t been successful at it recently BUT the name brand has the ability to keep people interested.

Right now Microsoft has the best foothold in terms of penetration and people have come to expect certain things in a gaming system.

First, GAMES and second a decent price.