Shares of DivX Inc. gained ground Tuesday, after the video compression software maker said its technology will be included in Sony Corp.'s PlayStation 3 video game system.
DivX did not say how much the agreement is worth, but expects it to significantly increase the number of products using its digital playback technology. More than 100 million DivX certified products have been shipped.
Shares rose 44 cents, or 2.4 percent, to $19.07 in morning trading.
JPMorgan analyst Paul Coster described the agreement as ''an important breakthrough'' for DivX. He said DivX technology will probably be used in Microsoft Corp.'s Xbox, along with other major entertainment products.