Microsoft and Toshiba will collaborate on consumer electronics devices as well as traditional PCs under a “significant expansion” of their existing relationship.

The firms said that their strengthened ties come on the back of a cross-licensing deal signed in April.

As well as having long-standing links in the mobile market, the firms have been working together on tablet and Media PCs despite customers’ apparent apathy over those two formats to date. Tosh and Microsoft said their new improved relationship would result in compelling mobile PCs when(ever) Microsoft’s Longhorn OS hits the market.

But the deal has ramifications beyond the companies’ traditional playgrounds, with Microsoft apparently getting behind Toshiba’s efforts to establish the HD DVD standard.

Under the deal, the companies pledge to “investigate” development of HD DVD players using Windows CE technology. The companies also said they would “strengthen” their collaboration on DVD Forum’s iHD interactive fomat.

The HD DVD format is battling for acceptance against the Sony-backed Blu-ray format. Sony, as well as championing Blu-ray, also faces off against Microsoft in the console market.®

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