There is a battle of epic proportions shaping up between Sony and Microsoft over digital media in and around the home

February 4, 2004--Is MPEG-2 Dead? The Battle Over Home Entertainment and the Future of Video Compression.

There is a battle of epic proportions shaping up between Sony and Microsoft over the storage, delivery, and management of digital media in and around the home. At stake for Sony—its continuing dominance of home entertainment electronics as it enters a new era. For Microsoft it's about winning or losing new territory for the Windows OS as the market for productivity PCs matures.

Unlike MPEG-4, Part 2 video, which was only about 25% more efficient than MPEG-2, there is a clear case for implementing an advanced video codec (AVC) at some point to improve the performance of home media systems.

Each company must build a long-term strategy around its greatest strengths and its opponent's weaknesses—and we can see this strategy unfolding as Sony and Microsoft announce their new home media products, Sony's PSX and the Windows XP Home Media Edition-based Media Center PC.

Several others are vying for recognition and dominance in this new market battle ground. Learn who the players are and who the possible winners will be.

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