Philips Delays Digital Cassette

Philips said it is delaying the introduction of its digital compact audiocassette system by several months, a setback for the Dutch company as it prepares to challenge a rival technology developed by Sony Corp.

The DCC machines were supposed to reach the market in large volume by September, but Philips said Thursday that it needs more time to ensure that the products will meet quality standards when mass produced.

The company said the DCC900 will be available in the United States and in major European markets “well before” the year-end holiday shopping season but declined to be more specific.

The DCC system will play a new type of cassette that offers clear, crisp digital sound that’s nearly as good as a compact audio disc. The Philips machines also will be able to play standard cassette tapes.

All the major record companies have committed to releasing titles on DCC, and consumer electronics retailers are counting on the product to help ease a long sales slump.

But DCC faces a major challenge from Sony’s Mini Disc, a recordable, palm-sized compact disc system due in stores by November. The Sony product, however, has been endorsed by only two of the six major record labels.

The systems offer comparable sound quality and are designed to build on the success of the standard compact disc format, while offering recording capabilities that standard CDs do not currently offer.

Most major consumer electronics companies plan to license the technologies from Philips and Sony and introduce their own versions of one or both systems.

Delays in introducing complex new products are not uncommon, but this is the second time that Philips has postponed its DCC900. The product, announced in 1990, was originally supposed to be available last spring.

“This is going to upset a lot of people, because it further damages Philips’ credibility,” said Paul Gluckman, managing editor of Audio Week newsletter.

Still, Gluckman said it was better for Philips to delay the product’s introduction than face consumer complaints about quality later.