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
CD-i games from The Legend of Zelda series out to independent studios, Philips subsequently used the characters to create three games for the CD-i, with Nintendo taking no part in their development except to give input on the look of the characters based on the artwork from Nintendo's original two titles and that of their respective instruction booklets. Philips insisted that the development studios utilize all aspects of the CD-i's capabilities including FMV, high-resolution graphics, and CD-quality music. Because the system had not been designed as a dedicated video game console, there were several technical limitations, such as laggy controls (especially for the standard infrared controller), and numerous