Microsoft and Toshiba, in a new announcement yesterday, said that they are working together to develop HD-DVD players, to cross-license technologies, and cooperate in designing new models of mobile PCs.

The deal, announced by Microsoft Corp. Chairman Bill Gates and Toshiba Corp. President Atsutoshi Nishida, is a big win for the HD-DVD format in its competition against another technology called Blu-ray Disc, which is backed by Sony Corp. and Apple Computers Inc., to become the world standard for next-generation of DVD players.

Gates, who is visiting Japan this week to meet with university students and business leaders, stopped short of calling the agreement exclusive, though he stressed he wanted to see HD-DVD become more widespread.

Nishida said it was unclear what effect the agreement between the Redmond, Wash., software giant and Japanese electronics maker will have on the format war. The competing sides, which have each lined up big-name companies and Hollywood studios for backing, have unsuccessfully been holding talks to try to agree on one standard.

Link: ABC News - Microsoft, Toshiba Team on HD-DVD Players
Link: DVD Recorder World - Sony - Toshiba Alliance Is Boost for HD-DVD