The development of wear resistant coatings produced by different PVD techniques has mainly been focused onmetal-nitride and metal-carbide coatings, such as (Ti,Al)N, (Cr,Al)N, Ti(C,N) and (Ti,Si)N etc. However, duringthe recent years there has been a tremendous progress in the attempts to produce crystalline metal-oxide coatings,such as (Cr,Al)2O3, especially by using cathodic arc evaporation. Challenges, such as target poisoning andinsulating anodes have been overcome, opening up for a completely new group of materials. By the combinationof nitride and oxide coating processes, a new dimension in the material space has been opened, giving us metaloxy-nitrides. This presentation concerns coatings such as (Ti,Al)(O,N) and (Cr,Al)(O,N) deposited onto WC-Cosubstratesusing cathodic arc evaporation. Results for coating structure, analyzed by SEM, XRD, TEM, etc., andmechanical properties, analyzed by nanoindentation and metal cutting tests will be presented as a function of theO/N ratio. A unique advantage of the highly ionized plasmas combined with the relatively low depositiontemperatures in the cathodic arc processes is that the energy of the impinging species cause collision cascades inthe lattice that makes it possible to quench solid solutions and metastable compounds. These coatings have shownimproved metal cutting performance with enhanced tool life in both turning and milling applications.