Philips Natuurkundig Laboratorium Diepeveen built an error-correcting coder-decoder that was delivered in the summer of 1978. The decoder was included in the CD prototype player that was presented to the international press. To commemorate this breakthrough, Philips received an IEEE Milestone Award on March 6, 2009. This breakthrough was also appreciated by Sony and they started a cooperation with Philips that resulted in June 1980 in a common CD system standard. Philips as a whole took a turn for the worse and by the end of the 1980s bankruptcy seemed a very real possibility. Under research director Kees Bulthuis the position of long-term
Philips CD-i that though Philips had a large booth at the 1995 Electronic Entertainment Expo, there was no CD-i hardware or software on display. "Next Generation" scored the console one out of five stars. After its discontinuation, retrospectively, the CD-i was overwhelmingly panned by critics who blasted its graphics, games, and controls. Microsoft CEO Bill Gates admitted that initially he "was worried" about the CD-i due to Philips's heavy support for the device and its two-pronged attack on both the games console and PC markets, but that in retrospect "It was a device that kind of basically got caught in the middle.