Vidyo, the fast-growing videoconferencing software startup, is moving into the consumer market thanks to an agreement with Nintendo to power video chat on Nintendo's new Wii U gaming console.

The move will put Vidyo into closer competition with consumer-grade videoconferencing services appearing on video game consoles, including Skype, which Microsoft maintains is coming to Nintendo rival Xbox 360 sometime in 2013.

Ofer Shapiro, Vidyo's CEO, said it was an "unprecedented opportunity" for both Vidyo and Nintendo.

"Through this collaboration, we'll be adding Wii U consoles to the pool of Vidyo-enabled systems, which will build critical mass around Vidyo's scalable architecture and software platform," Shapiro said in a statement.

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Founded in 2005, Vidyo is known for its use of Adaptive Video Layering (AVL) technology, which requires only the Internet and general data networks to optimize video quality for each participant in a conference. The company has closed about $97 million in venture funding over the past seven years and expanded a network of OEM partners that includes Google, Hitachi, FuzeBox, Ricoh and Philips.

Vidyo also has a steadily growing ecosystem of channel partners. Its various technology advances include the addition of a virtualized version of its infrastructure, the launch of a white-label program for Vidyo service partners, and the debut of a service called VidyoWay, which connects H.323 and SIP-based room systems to enable free interconnectivity among video endpoints.

PUBLISHED NOV. 19, 2012