The Redmond-based company said that its Show projector is the size of a PDA and could be built into mobile phones.
The device can project DVD quality visuals up to a range of 2.5 metres and has a claimed battery life of nearly three hours.
"Consumers want better display solutions that will enrich their experience in watching TV, videos and movies, playing games, and browsing the web from their phones and other mobile devices," said Alexander Tokman, president of Microvision.
"While mobile multi-media subscription services are on the rise, handset manufacturers, content providers and service providers view tiny phone displays as a barrier to stronger consumer adoption of their products and services.
"With Microvision's Show you could view and share videos, newscasts, search results, presentations, feature-length films and family photos in a large, full-colour, hi-resolution format instead of a 2in QVGA display."
The projector uses three colour lasers and saves power by using the lasers intermittently, and eliminating the need for a fan to cut heat build up.
The first mobile devices to use the technology will be released to market at the end of this year and are expected to cost around $300.
World's smallest projector debuts at CES
By Iain Thomson on Jan 7, 2008 2:05PM