In January 2004, Sony announced the Hi-MD media storage format as a further development of the MiniDisc format. With its release in later 2004, came the ability to use newly developed, high-capacity 1 gigabyte Hi-MD discs, sporting the same dimensions as regular MiniDiscs. The Hi-MD format can be considered obsolete as the last recorder/player was discontinued in 2011. The discs themselves were withdrawn from sale in September 2012, though regular MiniDiscs are still available (as of October 2015[update]).
Hi-MD offers the choice of several codecs for audio recording: PCM, Hi-SP and Hi-LP, each selectable on the Hi-MD Walkman itself. PCM is the highest quality mode, followed by Hi-SP (the default mode), then Hi-LP.
Each of these codecs is available natively for recording on standalone Hi-MD devices. Additional bitrates are available with SonicStage software on the computer. Up to 45 hours of audio can be recorded per disc at the lowest-quality setting via SonicStage PC transfer.
All Hi-MD units have the ability to play back regular MiniDiscs. Most Hi-MD Walkmans also have the capability to record standard MiniDiscs in standard SP, LP2 and LP4 codecs in MD mode (as opposed to Hi-MD mode), ideal for creating discs intended to be played back in older (pre-Hi-MD) MiniDisc units.
Hi-MD discs offer the ability to store computer files in addition to audio data. For example, a Hi-MD disc could have both school or work documents, pictures, videos, etc. as well as music (playable in a Hi-MD Walkman) if desired.
When connected to a computer (via USB cable), a Hi-MD Walkman is seen as standard USB Mass Storage device, just like a USB stick or external hard drive. On a Windows computer, a Hi-MD device is listed as "Removable Disk" in "My Computer". The disc has a FAT filesystem. Hi-MD units are powered by the USB bus when connected—just like USB flash drives, they do not require additional power (and do not use their own battery power) when plugged into a computer.
Sony's SonicStage music management software is not needed to save and manipulate files on the discs; it is only required to get playable audio on and off the device; all files are manipulated using standard operating-system functions. However, when SonicStage software is active, the recorder is not treated as a data storage device—SonicStage "takes over" the management of the device. This is necessary since SonicStage sends special Sony-SCSI-commands to the HiMD-device. Among these are some for reading/writing DRM-data, setting/getting the date on the device, erasing/formatting of the disc, control of audio-playback (PLAY/STOP/PAUSE/SCAN/SEARCH/SEEK) and reading defect-lists.