The deal gave HD DVD its competitive next-gen features, but here's the rub: Microsoft didn't need physical media to implement HDi. All of HDi's interactive bells and whistles could theoretically be applied to downloadable video content, as long as a runtime environment was available. Even as the disc format war raged on, elements of HDi's runtime environment showed up in Microsoft products like the Xbox 360 and Vista.HDi-on-a-disc may now be dead, but the technology certainly isn't. A Microsoft developer told me that the company's HDi crew hasn't been disbanded. Microsoft was apparently quite pleased with HDi's performance, and is currently exploring applications on other platforms.
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