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Sunday, July 04, 2004

Life in the vault - The Digital Home by Economist

Companies are fighting to turn your home into an entertainment multiplex.Intel, the world's largest chipmaker, launched two new lines of chips, code-named Grantsdale and Alderwood, which it says are the “most compelling” changes to the way personal computers (PCs) work in “over a decade”. From here on, claims Intel, PCs will be “all-in-one hi-fi devices”, “entertainment PCs”, and “vaults” for digital content.Intel's vision is that consumers will start to use their PCs at home to download, store and manage films, songs and games, in order to transmit all this fun stuff wirelessly to TV screens and stereo speakers throughout the house.
The article elaborates ,"Art Peck, an analyst at Boston Consulting Group, says that the real money in the digital home will be made by those providing a service or selling advertising. The hardware makers, he thinks, are therefore fooling themselves by thinking that any device can become a “Trojan horse” to enable them to capture the bounty. It is much more likely that they will all end up as makers of interchangeable commodities for the digital home, that the consumer cares little about unless the stuff breaks down".
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