DVR maker ReplayTV said Monday that it was exiting the set-top DVR market, instead planning to release a new software-based DVR solution in 2006. Through a deal with TV card manufacturer Hauppauge, the software would be bundled with the company's WinTV-PVR cards in North America.

ReplayTV has had its share of difficulties, coming in second to market-leader TiVo and struggling in retail due to its competitor's much stronger brand recognition.

It has been a tough year for ReplayTV's parent company D&M Holdings as well; in August, the company announced its Rio division was exiting the MP3 player market.

However, D&M said that it had successfully restructured the ReplayTV division to make it "solidly profitable." Part of this plan includes the sale of remaining 5500 Series DVR boxes, which the company said it intends to support along with existing ReplayTV customers for the life of the product.

"More consumers are using the PC as an integral home entertainment device, and sales of PC tuner cards are soaring around the globe," vice president and general manager of ReplayTV Bill Loewenthal said. "Creating a global DVR solution for the PC is a natural step for ReplayTV."

ReplayTV's DVR software for the PC would be similar to the experience on its DVRs, the company said, with enhancements that build on the original design.

Pricing and further details would be released in 2006, the company said.