PSC general manager (consumer electronics) S Nagarajan told The Financial Express that Philips Research would focus on various aspects of software research and development and work in harmony with PSC. However, he added that a final decision was yet to be taken.

Philips recently merged its business electronics arm with its consumer division as both the divisions were equally customer-oriented. However, in India, the merger is effective only to Philips India and not to PSC. "For PSC, the merger will be officially in place by January 2000. We are waiting to finish some ongoing projects which started under separate labels of consumer and business divisions," said PSC chief executive officer Bob Hoekstra.

According to Nagarajan,the company was getting ready to cash in on the tremendous potential for tailor-made TVs and other electronics products that require internet support.

PSC is in the process of designing futuristic software components that go into high-tech digital electronic products. PSC components would provide extra features to audio and video products besides cutting down the volume of cables used. Some of the high-end software embedded products that PSC is working on include interconnecting devices for TV, VCR/TC-VCR, disc systems, mobile telephones, interactive home networking devices and set-top boxes to link home appliances. PSC is also working on close-caption (CC) devices for the hearing impaired.