Every dollar a 360 owner would have spent on HD-DVD movies for the console would have been dollars that could have possibly been spent on games. In that way the HD-DVD movies would have been competition for them and unlike those offered on Xbox Live, Microsoft wouldn't have gotten much of a cut of the profits.
Was it just a pawn for their streaming technology that was in development? Maybe we'll find out someday but for now it's all just speculation and probably isn't worth the effort being put into discussing it.







