Sony and NEC have announced they both approve the new contract. This means a new company will be established, called Sony NEC Optiarc Inc.. This new organisation will start their productions on April 3 2006.

Because Sony is specialised in Blu-ray Disc technology and NEC in HD-DVD technology, the company will produce both technologies.

Shinichi Yamamura, at this moment Deputy President of Sony’s Video Business Group, will become president of the new company. Sony will possess 55% of the stocks and shares, NEC the other 45%. In total 350 staff members will work in the new company.

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