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HD DVD exclusivity deal: sealed by US$ 150 million in incentives?

Posted Aug 21, 2007 at 12:14PM EST by QJ Staff

Listed in: PS3, Xbox 360 Tags: DreamWorks, gaming accessories, Michael Bay, Microsoft, New York Times, Paramount Pictures

Paramount and DreamWorks recent decision to release their movies exclusively on the HD DVD format renewed the format war. The announcement even had Michael Bay steamed up.

The unexpected move, as the New York Times reveals, may have more to it than meets the eye though. According to Times, two unnamed Viacom executives revealed that the two studios together will be getting US$ 150 million in financial incentives.

The financial incentives will consist of revenues that will come from cash and promotional guarantees. Microsoft, one of the lead supporters for the HD DVD format, commented however, that they "provided no financial incentives to Paramount or DreamWorks whatsoever."

One interesting detail from the terms of exclusivity deal with the format may suggest that this blow to Blu-ray is only temporary: Paramount will only be HD DVD exclusive for 18 months. Only time will tell whether the format war will see its conclusion or whether the recent development just delayed the outcome.

Via The New York Times

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This really looks like a stall tactic on behalf of the HD-DVD camp. The recent months have delivered consistent blows against HD-DVD that would have more likely than not continued with the rapid decline of the HD-DVD format, but by doing this, HDDVD is moving to prolonging this war in the hopes of enticing more people to their format as what I assume will be an attempt to grow the user base enough so that "neutral" companies will stay neutral and not go Blu-ray exclusive.

Only time will tell if this pays off, but I don’t believe that it will work out in the end, especially with the deal only lasting 18 months.

# and — Quixand 2007-08-21 14:37

complaining about fanboys is something useful?

what a loser.

# To Quixand — MGSROCKS1 2007-08-21 14:39

Hey man. I was wondering if its okay that I use your name Quixand, as my Gamertag.

# use it — Quixand 2007-08-21 14:44

it would be an honor.

just make sure your one heck of a player man!!

# lol — Jobo50 2007-08-21 14:45

randomness :)

# so what — Jobo50 2007-08-21 14:49

Whats the problem with them paying money to better their console, its better than Sony who is greedy and hogs all the money, and makes you pay $15 per month for games like starwars galaxies and planetside for a game that is like 4 years old. Sony is a greedy company, now you complain about microsoft giving money to make their console better for the consumer. I dont get your argument.

# in relation to that... — Quixand 2007-08-21 14:59

i've already received a couple of invites in my PSN since i gave my PSN ID...

just figured it would be nice to have my fellow QJers in my list especially once Home hits... QJ Pool tournament anyone?

so here it is again my PSN ID is madicemann (i know Quixand is way cooler but i've been using that since counterstrike days)... so to the QJ regulars who'd like to add me just give an invite and let me know that ur from QJ (if you could give ur QJ ID with the invite that would be better so i'd know which is which)... and i repeat my invitation to QJ staff PS3 owners... give me a way to get at back you for all the anti-PS3 articles you've posted :)

to AoxomamoxoA: u asked if you could add me in ur PSN and as a good gesture to an XBot that everybody hates i've already sent an invite to ur PSN ID.

# crap — Quixand 2007-08-21 15:01

i meant movie outfits

# Nothing — Guest 2007-08-21 15:03

This has almost nothing to do with the PS3 and 360, this is just about the Format Wars, Blu-Ray and HD DVD, and everyone know that Blu-Ray would have been the better choice for any company going to one side, anyone who denies it just trying to Favor the 360 which really doesnt even support HD DVD that much.

# yes — Guest 2007-08-21 15:21

always complaining go play Motorstorm or somethin watch blu-ray

# yeah — ari24 2007-08-21 15:28

well if im correct don't you guy have to pay for every little thing including changing your (online) name an just about every little other thing mean while i get online for free u dont i pay for games so do u. an sony is the greedy one.

# ha ha! — Guest 2007-08-21 16:06

your all fools, because i just got a betamax player and a new game system called "the phantom". I'm still waiting on some games to be released. the phantom will kill the 360 and ps3. this is the phantom (http://upload.wikimedia.org/wikipedia/en/8/8a/Phantom_-game_system-.jpg)

# . — mreverdred01 2007-08-21 16:45

plus, Sony doesn't get money for that. Lucasarts (the guys that made the star wars galaxies game) and whoever made planetside are the ones that get the monthly MMO subscription money. For example, Final Fantasy IX costs the same amount of money a month on the PS2 as it does on the computer. Sony might get a little piece of that money for all the people subscribing from PS2s, idk, but the people that made the MMO decide the price.

# ha — Guest 2007-08-21 17:14

Thats funny, your waiting for a "game system" that got cancelled.

# To Quixand — MGSROCKS1 2007-08-21 19:06

Thanks. I'm getting a PS3 soon too by the way. Can I add you to my PSN? You'll be the first friend :)

# To Quixand, Folding Junkie, MCS, Aoxomamoxoa, etc — Guest 2007-08-21 19:11

Hi Guys (Quixand, Folding Junkie, MCS, Aoxo, Stealth, Vsions),

If you are interested, maybe you can add my PSN ID as well.

My PSN ID: Man_The_King

For any 360 fans who are interested (MCS, Aoxo, I'm talking to you guys here), my 360 Gamertag (if you want to add) is: Man The King

Regards,

Thinker/MTK

(I used to use the name MTK, but then started using Thinker).

# ... — Quixand 2007-08-21 22:06

MGSRocks.. sure you can add me anytime when u get ur PS3.

MTK... i just added u mate.. know what i wasn't surprised when u said thinker and mtk are the same person... tso that's why they both sounded so weirdly similar.

# What's wrong with Sony and BD? — Folding Junkie! 2007-08-22 02:10

I don't even see what the supposed problem is. Sony is doing fine. Their TV's + cameras are selling great right now. They always make a profit on movies and music. This month the NPD numbers will even show them selling more consoles than Microsoft!

BD is outselling HD-DVD on a consistent and minimum 2:1 basis with exclusivity at Blockbuster and Best Buy! BD players are coming down in price so the difference is far less drastic than when the war started and every PS3 sold is another possible BD consumer.

Neither company has any cash flow problems. The major difference between the two is that Sony has money because of good business decisions. They build products and provide artistic content that people want to buy. Microsoft throws money around! They force products on the consumer more than any company in the world. Does IE ring any bells? How about antitrust lawsuits? They did not make a monetary offer yet but if you read the actual article on nytimes.com they also do not rule it out. Would it really surprise anyone if they did?

The Paramount agreement is laughable! Only 18 months exclusivity with the entire Spielberg catalog not even part of the deal! Is that even a deal?

Lay off of Sony! Lay off of Microsoft! Play the damn games!

My two cents!

# sigh... — Guest 2007-08-22 03:08

You know he was OBVIOUSLY being sarcastic, right?

# To Common Sense — Guest 2007-08-22 03:27

"I don't know if I want to reveal my PSN ID if I do."

That's up to you. I put my PSN ID out there if you (or anybody else, like Folding Junkie and Quixand) want to add it. Whether you do so or not is purely your decision mate.

I have gotten no death threats before. I wonder why? Maybe it had something to do with the fact that I did not indulge in unwarranted bashing or insults? ;) ... Just joking mate.

Anyway, the PSN ID is Man_The_King (with underscores) and the 360 Gamertag is the same, but with spaces instead of underscore. Add if you want, up to you :).

# hmm — Guest 2007-08-22 05:37

take no offense to this post because this isnt directed in anybody in particular, but i think that hddvd is a dying format. paramount and dreamworks had to give up $150m usd just to keep the format alive while blu-ray is still dominating. i believe that if the xbox came packaged with the hddvd drive, the sales of the hddvds may have been boosted.

# i like the ps3 — Guest 2007-08-22 12:24

so that makes me rich? im buying it in around 2-3 weeks that means im rich? your an idiot.

# I LOVE MOTORSTORM! — Guest 2007-08-22 12:29

yes i love motorstorm its my favorite game. just figured id let you know

# .....again — Guest 2007-08-22 15:47

Noooo *****! isnt it kind of obvious?

# Wow — Guest 2007-08-23 02:38

Are people really this stupid? What the ***** does this have to do with xbox 360? Because it has an HD DVD add on? You should have this on the PS3 website where it actually matters to the 2% of HD owners in America :p.

Really though, anyone who thinks MS payed for this to help the 360 is *****ing retarded. Like, theirs just so many more economically viable ways to boost 360 sales with that 150mil that they did not waste it paying Paramount and dreamworks just to make sony mad, that's stupid.

# good — Guest 2007-08-23 07:19

waste more money on *****

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