The quantized PCM mode includes quantizing the samples so that distortion is added to the coded video. In this way, video blocks coded using quantized PCM appear more uniform with neighboring video blocks coded using other lossy compression techniques, such as inter-prediction coding or intra-prediction coding. The video encoder may first quantize the input video samples using a quantization step prior to PCM coding the quantized samples. This quantization step may be signaled to the decoder in the encoded video bitstream. The video decoder may receive an encoded video bitstream that includes quantized PCM encoded video samples. These samples are first decoded using pulse code demodulation and then dequantized using the same quantization steps used to encode the video. The video decoder may extract this quantization step from the output bit depth in the encoded video bitstream. (Selection) Figure 3