A new attempt to provide a higher-end sequel to the ubiquitous JPEG image standard is officially under way.

The multiple countries participating in the Joint Photographic Experts Group, which created the JPEG standard, have approved an effort to make Microsoft’s HD Photo format a standard called JPEG XR, said Bill Crow, who has led Microsoft’s HD Photo effort and who just took over the company’s Microsoft Live Labs Seadragon imaging project. XR stands for “extended range,” a reference to the format’s ability to show a wider and finer range of tonal gradations and a richer color palette.

“The country vote is done, and it passed,” Crow said. “That means the International JPEG committee has decided to go ahead and create the standard. Now it’s just a process of doing that work,” a process that will begin later this month in a meeting in Kobe, Japan.

Masaya Igarashi wants $200 headphones for his new iPod Touch, and he’s torn between Nintendo Co.’s Wii and Sony’s PlayStation 3 game consoles. When he has saved up again, he plans to splurge on a digital camera or flat-screen TV. There’s one conspicuous omission from the college student’s shopping list: a new computer.

The PC’s role in Japanese homes is diminishing, as its once-awesome monopoly on processing power is encroached by gadgets such as smart phones that act like pocket-size computers, advanced Internet-connected game consoles, digital video recorders with terabytes of memory.

“A new PC just isn’t high on my priority list right now,” said Igarashi, shopping at a Bic Camera electronics shop in central Tokyo, who said his three-year-old desktop was “good for now.”

“For the cost, I’d rather buy something else,” he said.

Japan’s PC market is already shrinking, leading analysts to wonder whether Japan will become the first major market to see a decline in personal computer use some 25 years after it revolutionized household electronics - and whether this could be the picture of things to come in other countries.