Few were surprised when Microsoft (along with Intel) announced that they would back HD DVD over Blu-ray.
While Microsoft's stance on the next-generation of optical storage media was officially neutral, their close working relationship with Toshiba led us to suspect that HD DVD
would get the nod. The interesting question is, why?

Ribbas said that Microsoft's decision was made with respects to where things are today, not where the respective formats' proponents claim they will be in
several months. Today, Ribbas says, HD DVD has bigger capacity, and true hybrid support. In his view, HD DVD is at 30GB, while Blu-ray is at 25GB. On paper, Blu-ray has 50GB support, but outside of a lab context, the 50GB disc is missing in action.
How feasible is a 50GB disc in the short term?

There's more to the story, including the fact that HD DVD requires Managed Copy. Read on for more on what may end up as the first sign that HD DVD isn't dead afterall.
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