Intel Hopes to Transform Home Media
By Terril Yue Jones
Personal computer makers have long eyed the living room as the next frontier, hoping to revolutionize the way people watch movies, listen to music and record their favorite TV shows.
Persuading people to stick computers in their TV cabinets has been another story: So-called entertainment PCs account for just 3% of U.S. sales.
But the industry's drive to transform home entertainment may get a major boost Saturday when PCs with new innards from Intel Corp. go on sale.
If you had not heard, there's a battle of titans brewing - it's called digital convergence. On the one hand you have the New Economy (NE) camp and on the other the Old Economy (OE) camp and the stakes are about $1.0 trillion (give or take a few billion). Thus far the scales are tipping in favour of the NE camp but the battle has barely begun so predictions of victory for either are fairly meaningless.
You'll probably be wondering what the heck I mean by new and old economy camps. Well, by NE I mean those companies that have fully understood, embraced and adapted to the changes brought about by, among others, the Internet and rapidly changing consumer habits and attitudes. By OE I mean those companies still fervently clinging to their long held beliefs, traditions and comparatively narrow mindsets which have served them well in the past but that the future has little or no need for.
This battle is best understood by a quote from a writer of wars past.
"The innovator makes ennemies of all those who prospered under the old order and only lukewarm support is forthcoming from those who would prosper under the new."
Niccolo Machiavelli, "The Prince" (1513)
Intel is but one leading the charge of the new and throughout this blog you'll find references to many other companies that are - some slowly, others rapidly - outwitting established players.
Welcome to the game.