An arc-bond sputtering physical vapour deposition chamber has been used to deposit hard low friction binary and ternary coatings by steered arc evaporation, unbalanced magnetron sputtering and a combination of both techniques. The results of the coating trials using segmented targets manufactured by hot isostatic pressing together with co-sputtering and arc evaporation of pure titanium and zirconium targets are reported. Ti x Zr y N coatings with various metal ratios were deposited on high speed steel and stainless steel substrates and characterized using X-ray diffraction, scanning electron microscopy, glow discharge optical emission spectroscopy, Knoop micro hardness, Talysurf roughness and scratch adhesion methods. The results illustrate the relationship between the coating composition and structure with performance in terms of adhesion, hardness and wear properties. The results also serve to show changes in coating properties with deposition technique and the improved performance of Ti x Zr y N films over binary systems.