In an expansion of their alliance, Microsoft and Toshiba said Monday they plan to develop high-definition DVD players together, cross-license technologies and cooperate in designing new models of mobile personal computers.

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.

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.

Source: AP