The company says the move of the consumer-focused entertainment group will allow for a stronger focus on its health division.
Redmond and LCD maker swap patent licenses, giving Funai access to key Microsoft patents on exFAT file system, valuable in storing audio and video content.
Philips will not be exhibiting at the 2009 Consumer Electronics Show in Las Vegas.
The Japanese electronics maker will pay a royalty to sell televisions under the Philips and Magnavox brand names.
Funai announces plans to release a Blu-ray player in the second quarter of 2008 for less than $300.
Philips has unveiled three new Blu-ray players--the BDP3010, BDP5010, and BDP7310--that will be manufactured and distributed by Funai Electric in 2009.
With the Philips brand transitioning to Funai, details are sketchy on the new 2009 Philips 7000 series FlatTVs--but we have a picture.