News.blog: Microsoft offers cash incentives for HD DVD

Microsoft is offering cash incentives called coupons to computer makers that sell personal computers with HD DVD drives, the next-generation DVD format the software behemoth is supporting over the rival Blu-ray Disc format, the Electronic Engineering Times reported on Monday.

Microsoft declined to comment in the EE Times report, which cited as evidence of Microsoft's success Hewlett-Packard's decision to back HD DVD as well, where it had previously exclusively supported Blu-ray. An HP executive also said that Microsoft's forthcoming Vista version of Windows will include HD DVD support for free, whereas PC makers must pay about $30 (£17) per drive in Blu-ray royalties.

In September, Microsoft and Intel raised the profile of the battle between HD DVD and Blu-ray when they announced they backed HD DVD. Both drive types offer higher capacities than current DVDs, making it possible to record high-definition video, and both types of drives are expected to debut this year.