Microsoft reportedly excludes Dolby from Windows 8

At least for now, Microsoft is not including Dolby's DVD playback technologies in its upcoming Windows 8 operating system. Microsoft rumor site WinRumors reported that Dolby had informed its investors of Microsoft's decision in a post-earnings conference call. “(We) have recently learned that our technologies are not currently included in the Windows 8 operating system under development. If our technologies are not included in the commercial version of Windows 8, we expect to support DVD playback functionality by increasingly licensing our technologies directly to OEMs and ISVs, and we will seek to extend our technologies to further support online content playback," it quoted a Dolby statement as saying. WinRumors noted Microsoft had included support for Dolby Digital Plus directly into Windows 7, the present version of its flagship operating system. The support allows DVD playback of up to 7.1 channels of high-definition surround sound. It cited Forbes reports showing Dolby’s shares traded lower on Friday after Dolby’s announcement. "The lack of Dolby support in Windows 8 could point to Microsoft licensing DVD Playback software from another vendor or providing a different option for Windows 8 customers," it said. WinRumors said Microsoft will announce its Windows 8 plans at the company’s BUILD developer conference in Anaheim, California next month. A separate article on TheNextWeb said Dolby's “mix of PC licensing revenue (had) increasingly shifted towards the operating system." "In other words, even if Microsoft excludes Dolby from Windows 8, the company will work with PC manufacturers and other OEMs to ensure that its technology does find integration into new computers, ensuring at least part of its revenue stream," it said. TheNextWeb speculated the move may be due to the rise of cloud software and streamed movies, such that DVD playback technologies are simply too expensive to license. It said another possibility is that with Microsoft’s exceptionally close ties to Netflix, it no longer sees the need to continue focusing on the playing of physical storage mediums. "Whatever the case, it seems that Dolby is out, and now it is up to them to fight to keep their spot at the PC table," it said. — TJD, GMA News