Microsoft Continues Expansion in Digital Music Market

Microsoft Corp. has announced that it has acquired Pacific Microsonics Inc., the developer of HDCD digital audio technology.

Microsoft will incorporate PMI’s pioneering technology into future offerings for the PC and will make it available for a wide range of consumer devices.

PMI brings to Microsoft unique strengths in digital audio signal processing that are increasingly important as digital media becomes a primary source of entertainment on both PC and non-PC devices.

“PMI has done amazing work to improve the sound quality of audio CDs with HDCD, which has been embraced by the recording industry,” said Will Poole, vice president of the Digital Media Division at Microsoft. “Its wealth of experience and innovative technology will be a tremendous addition to our industry-leading audio technology.”

PMI’s High Definition Compatible Digital (HDCD) technology is a patented process used in top-end recording studios to correct the distortions found in current digital recording technology.

PMI will continue to support and develop its existing products from its headquarters in Union City, Calif.

“Joining Microsoft means we can continue to innovate for our existing customers while expanding our efforts to include a whole new range of customers,” says Bennet Goldberg, CEO of PMI. “We look forward to working with the great talent at Microsoft working on digital media technology and continuing to create exciting new innovations for the industry.”

Financial terms of the transaction were not disclosed.