Microsoft introduced a new image format to potentially replace JPEG. Despite JPEG’s flaws, it’s an open standard. There’s also PNG, which is superior to JPEG in some ways. Even though Microsoft plans to license HD Photo, they still own the patents on it and anyone who uses it will be held hostage to Microsoft. On a whim they can decide to prevent it from being used on a particular platform or use it against a particular software developer they consider a threat.