The effect of oxygen incorporation on the crystallographic, magnetic, and recording performance of perpendicular magnetic recording (PMR) oxide media was investigated. The media were prepared by dc-magnetron sputtering of CoCrPt-SiO2 targets in an Ar/O-2 gas mixture. X-ray photoelectron spectroscopy (XPS) detected Cr-O peaks in the sputtered film, whereas no strong evidence Of SiO2 is seen. Moderate oxygen incorporation in the film (similar to15 at%) promotes Cr-O formation in the grain boundary and results in a dramatic increase of coercivity H, and signal-to-noise ratio (SNR). However, as the O-2 content is further increased, oxide incorporates into the core of the grains, resulting in decreased H-c, magnetization and SNR.