Even with all of Microsoft’s woes, they managed to come out on top with their battle for video compression standards industry dominance seems to be on track. Keep in mind that even though they won the battle to be the “next big thing” in the video compression arena, this hardly means that they have won the war.

Blu-ray on Wednesday said Microsoft Corp. (Nasdaq:MSFT - news) has won the DVD technology group’s backing of a video compression standard for new high-definition discs, marking an advance for the software maker in an emerging consumer electronics arena.

Two consortia, Blu-ray and HD DVD, are competing to become the technology for the next generation of DVDs which can store high-definition movies and many times the data of today’s discs.