ATRAC3™ is Sony's new digital data compression format. It stands for Adaptive Transform Acoustic Coding. ATRAC made its debut in 1992 with MiniDisc.
The latest ATRAC3 roughly doubles the data compression capability of ATRAC, making it possible to now record up to 320 minutes of music on a single MiniDisc or 4 hours of music on a 128MB Memory Stick.