Toshiba and Microsoft have agreed to work together on the development of HD-DVD players.
Microsoft Chairman Bill Gates and Toshiba Chief Atsutoshi Nishida made the joint announcement last month during a press conference in Tokyo.
The alliance will develop HD-DVD players using Microsoft Windows CE technology.
Despite the alliance, Gates steered clear of committing to HD-DVD to the exclusion of the Blu-ray Disc. Microsoft will remain neutral on Blu-ray.