No high-def in 32-bit Vista, thanks to DRM

The 32-bit-compatible version of Vista, the next version of Windows, won't play back high-def video because they can't get the DRM right. However, it will play back high-def video if, instead of buying HD DVDs, you just download copies of them off the Internet — talk about a perverse incentive.

"Any next-generation high definition content will not play in x32 at all," said Riley.

"This is a decision that the Media Player folks made because there are just too many ways right now for unsigned kernel mode code [to compromise content protection]. The media companies asked us to do this and said they don't want any of their high definition content to play in x32 at all, because of all of the unsigned malware that runs in kernel mode can get around content protection, so we had to do this," he said.

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(via /.)

Update: An anonymous Microsoft employee sez

Media Player won't play HD-DVD and Blu-Ray, but you'll still be
able to play them (on XP, even) with third-party programs like
WinDVD and PowerDVD, in full HD.

Why? Because the media companies are willing to certify WinDVD and
PowerDVD, but they won't certify Windows, basically for the reasons
described. The other problem is indemnity – Microsoft has much
deeper pockets and the risks of someone hacking Windows and getting
the Microsoft keys is too high; Microsoft's payouts to the studios
would be enormous. The DRM contracts essentially say that you
forfeit all money lost to the studios if your key is hacked. The
money "lost" to the studios is of course calculated using the
estimate most favorable to the studios – i.e. every copy downloaded
off LimeWire is a full-price loss. Intervideo (WinDVD) and
Cyberlink (PowerDVD) are small companies and figure they're not the
largest targets, or they'll just go bankrupt and start again as a
new company. Cyberlink is based in Asia, and suing them would be
pricey.

The screwball thing about all this is that essentially the same
risks of hacked drivers and whatnot exist with PowerDVD and WinDVD;
there's no good reason for the studios to certify them if they
really are worried about people using the PC to copy movies. This
leads folks at Microsoft to conclude either:

A) The studios don't understand the technology enough to see
these risks clearly, or

B) They just want to screw Microsoft

The studios all have tech consultants, and many of them are not
fools, so A seems unlikely. B also doesn't seem completely likely.
It's probably the usual: human stupidity rolled up in a big ball.