Philips Working on Digital, Analog Unit

Dutch electronics giant Philips Consumer Electronics confirmed Monday that it was developing a new digital cassette machine that would also play regular analog tapes.

The company said the system, when used with digital tapes, would provide the same sound quality as compact discs.

Tandy Corp. said Monday that it was working with Philips on the technology.

Tandy said the system’s introduction would depend on Congress’ action on copyright legislation. Record companies have been fearful that digital audio tapes’ ability to make near-perfect copies would encourage record piracy.

To help mollify the record companies, DAT was introduced in the United States this summer using a technical standard that prohibits the machines from being used to make second-generation recordings from CDs.