Displays on embedded devices, such as cell phones, personal digital assistants, and game machines, typically have low color-depth resolution displays. The conversion of color image from high color-depth resolution formats, such as 24-bit per pixel color, to lower color-depth resolution formats for display on low color-depth resolution displays, such as those having 15-bit per pixel color, results in degraded image appearance, especially for 24-bit format images having gradual color changes. The present invention manipulates the color information of images or video sequences and improves the appearance of the display by dithering representations of the images in a color space having a luminance coordinate.