An excellent analysis on Engadget's post by Nathan Weinberg says that the real reason why Microsoft is backing HD-DVD is to actually fuel a bloody format war between HD-DVD and Blu-Ray resulting in the death of the two. But why would MS do such a thing? It correctly says that MS has has more to gain when the game is about creating better, more secure and more tranferable formats. But it will be a loss for it if people continue to rely on - what it paraphrased as - shiny round disks that don't play well with Media Center PCs.
Even I think exactly the same way. Let us know about your views on this.
Read this interesting article here
Thanks Nathan.