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Did he ever really "matter"?
Actually, yes. He made good on his promise on 'burying Nintendo' after Nintendo sold them out, who garnered a deal with Philips in that whole Cd-i debacle during early-mid 90's. But that story's been told and re-told, check the intertron for more details....
I wouldn't put too much stock in that piece. It rags on him specifically because of Blu-Ray, which isn't even out. The author is pretty keen that video-on-demand is the next big thing, not once, but twice:
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...Hastings has created an amazing system for shuffling around 120mm plastic discs, but online rivals such as iTunes and MovieLink seem to have the momentum as we head into the future.
That was about Reed Hastings, CEO of Netflix.
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There's little evidence that consumers are eager to upgrade their existing DVD collections, and by the time the latest format war is settled, most of us will simply download movies in our living rooms instead of hoarding them on little plastic discs.
That was about Warren Lieberfarb, who backs HD-DVD. How's the author so sure about the next format war's failure, and certain about digital distribution's sucess? [/off topic]
While one can question whether Kutaragi is legally sane, he's still one of the key players in the console wars.