According to a CNet article:
If it is up to Microsoft, the omnipresent JPEG image format will be replaced by Windows Media Photo.
The software maker detailed the new image format Wednesday at the Windows Hardware Engineering Conference here. Windows Media Photo will be supported in Windows Vista and also be made available for Windows XP, Bill Crow, program manager for Windows Media Photo, said in a presentation.
[...]
Typically digital cameras today use 6:1 compression, Crow said. Windows Media Photo should offer better pictures at double that level, he said. “We can do it in half the size of a JPEG file.”
Not only does compression save storage space, which is especially important for devices such as cell phones and digital cameras, a smaller file can also print faster, transfer faster and help conserve battery life on devices, Crow said. “Making a file that is smaller has all kinds of benefits.”
Considering that Microsoft already has the Windows Media Audio and Windows Media Video formats, Windows Media Photo seems like a no-brainer addition to the Windows Media format lineup.
But then again, do we really need yet another image format?