Microsoft and Toshiba Form Alliance to Develop Next-Generation DVD Players

Strategic Insights -

Microsoft and Toshiba have announced a partnership to develop next-generation DVD players that combine high-definition (HD) DVD technology with Microsoft's software, marking a significant development in the ongoing format war between HD DVD and Blu-ray. The partnership, which expands on an agreement signed in April, aims to produce a DVD player that uses Microsoft's Windows CE software, enabling a friendlier interface and easier compatibility with home computers. The agreement between Microsoft and Toshiba is seen as a blow to Sony's Blu-ray technology and may pave the way for similar pacts between Microsoft and other hardware makers.

Key Takeaways:

  • Microsoft and Toshiba have agreed to develop next-generation DVD players that combine HD DVD technology with Microsoft's software.
  • The partnership aims to produce a DVD player that uses Microsoft's Windows CE software, enabling a friendlier interface and easier compatibility with home computers.
  • The agreement expands on a pact signed in April in which the two companies agreed to cross-license patents on computer software and digital consumer electronics.
  • Toshiba plans to introduce a line of its own HD DVD players this year, although the first players will not include Microsoft software.
  • Proponents of Sony's Blu-ray technology argue that it promises sharper images and better data storage capabilities than HD DVD.
  • The new DVD players promise sharper images and more recording time than current models.
  • Toshiba claims that discs made with its technology will be cheaper than Blu-ray discs.
  • Bill Gates, Microsoft's chairman, and Atsutoshi Nishida, chief executive of Toshiba, jointly announced the agreement.
  • The partnership may pave the way for similar agreements between Microsoft and other hardware makers.

Statistics:

  • Microsoft and Toshiba aim to develop a next-generation DVD player that uses Microsoft's Windows CE software.
  • Toshiba plans to introduce a line of HD DVD players this year.
  • The first HD DVD players from Toshiba will not include Microsoft's software.
  • The new DVD players promise sharper images and more recording time than current models.
  • Toshiba claims that discs made with its technology will be cheaper than Blu-ray discs.

Sources:

  • Microsoft
  • Toshiba
  • "Microsoft, Toshiba expand alliance in digital media", Bill Rigby, Reuters, April [no date provided]