Microsoft broke stance and decided to formally back HD DVD in September of this year, citing a number of reasons. Now the EE Times is reporting that the company may attempt to leverage its OS dominance to push HD DVD penetration in the PC market.

Several industry sources last week told EE Times that Microsoft is muscling into the optical-disk fray by leveraging its operating-system clout to bundle HD-DVD within Vista, the company's next-generation OS. There is also talk that the software giant may be planning to offer cash incentives — in the form "coupons" — to system vendors or retailers if they agree to support HD-DVD. Such coupons would provide "credits" or "memos" for each PC that is sold with HD-DVD inside.

The question of motives is a never-ending one, and it has been rehashed more than once on Ars. The most common theory is that Microsoft is ultimately doing anything in its power to put the hurt on Sony's PlayStation 3, which will come equipped with a Blu-ray drive. The theory says that Microsoft is worried that the PS3 will dominate gaming once again, partially on account of the device's potential dual-role in the household: gaming console and Blu-ray player.

From arstechnica.com read  more HERE