InterVideo announced that Microsoft has chosen InterVideo to be the provider of its DVD playback software for the Xbox 360(TM) video game system. The partnership with Microsoft and InterVideo marks a significant step in PC/CE convergence, combining both video game consoles and home entertainment center together.

Scheduled for release in late 2005, Xbox 360 will provide consumers with a high-definition gaming experience, multi-channel audio fidelity, and high-quality DVD playback. Microsoft will license the DVD engine from InterVideo's WinDVD(R) for video playback in Xbox 360. This follows the announcement that InterVideo made regarding its licensing of DVD playback software to Microsoft in July of 2004.

"The Xbox 360 combines video gaming and home entertainment capabilities all in one product. We found that InterVideo's DVD engine is the ideal solution for providing movie playback for Xbox 360. InterVideo has leveraged its success in the consumer DVD market to provide consumers a superior level of DVD playback experience," said Ray DiCasparro, director, Home & Entertainment Partner Relations, Microsoft Corporation.

"Xbox 360 sets a new standard of complete home entertainment experience and makes it possible for both gamers and movie enthusiasts to enjoy the best of both worlds," said Steve Ro, InterVideo CEO and President. "InterVideo will continue its tradition of excellence in providing consumers with the latest revolutionary technology in DVD playback. InterVideo is pleased to be working with Microsoft in delivering to consumers a video game console as a home entertainment medium."