Microsoft, Toshiba Partner on Consumer Electronics

In contributing its digital-media software to the Toshiba hardware, Microsoft is demonstrating a commitment to go after a bigger share of the consumer-electronics market, said Yankee Group analyst Nitin Gupta.
Microsoft Latest News about Microsoft continues to push into the living room. The company on Monday announced an expansion of its partnership with Japanese electronics giant Toshiba Latest News about Toshiba in which the companies will collaborate on next-generation DVD technology and several other computing Latest News about computing products.
Under terms of the agreement, the two companies will make Windows software compatible with Toshiba's forthcoming HD DVD hardware to speed the introduction of new consumer-electronics devices.
While there will be speculation about what Microsoft's support of Toshiba might mean for the next-gen DVD format wars, analysts are saying that the pact is unlikely to tip the scales in favor of Toshiba's technology versus Sony's Latest News about Sony Blu-ray DVD format.

Mobile PCs Might Be Next

Toshiba and Microsoft have been working closely to promote tablet PCs and media-center systems that use Windows XP Latest News about Windows XP. In April, the companies signed a cross-licensing agreement that gives both companies the ability to fold their technologies into each other's products.
Of particular interest for the partners is the possibility of expanding hardware options for digital-electric appliances, which is a hot consumer market and one that analysts expect will grow.

In contributing its digital-media software to the Toshiba hardware, Microsoft is demonstrating a commitment to go after a bigger share of the consumer-electronics market, said Yankee Group analyst Nitin Gupta.

"They have made those intentions known with the launch of the Digital Media Hub and the next-generation Xbox, and this is yet another path into the living room," he said.

But, Gupta added, Microsoft stands to gain more than Toshiba, which is locked in a battle with Sony for control over high-definition DVD technology. "The operating system is not that integral to DVD players," he said.

DVD Battle Continues

Thus far, however, the talks about a potential unified next-gen DVD format have made little progress. Without a definitive agreement, the future of high-definition DVD players stands to suffer. Already, content providers have chosen sides. But without a single standard, consumers might be reluctant to adopt the new technology.

Ted Schadler of Forrester Research noted that Microsoft will support both HD DVD and Blu-ray. Schadler added that the software giant could help broker a compromise between the two camps.

"This is a reflection of Microsoft's intent to put their software in as many products as possible, including TVs, set-top boxes and PCs," he said.

Source: cio-today.com/news/Microsoft--Toshiba-Partner-on-HD-DVD/story.xhtml?story_id=12300002P3FU