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The Honolulu Advertiser

Posted on: Tuesday, January 13, 2004

Digital home entertainment taking spotlight

By Leslie Walker
The Washington Post

Attendees try out the Dell DJ portable MP3 player during the Consumer Electronics Show at the Las Vegas Convention Center.

Associated Press

LAS VEGAS — The long-promised dream of digital home entertainment networks seems closer to reality than ever at the annual gadget extravaganza known as the Consumer Electronics Show, which last week presented a dazzling lineup of new contraptions.

U.S. computer makers and Asian electronics giants touted rival visions of how people might manage libraries of digital music and movies, and their products make it clear that innovation is back in style after a three-year slump.

The new gear on display seems so diverse that consumers are likely to be overwhelmed. Change is roiling the electronics industry so fast that folks who buy today may kick themselves when rival products reach stores months later.

Debates still rage in backrooms over new formats for playing digital video and music, but companies are rushing products to market because they sense opportunity in two events — advances in digital processing and storage power that are slashing costs, and more high-speed Internet connections to homes.

As a result, Sony Corp.; Matsushita Electric Industrial Co., which makes Panasonic products; and other Asian home electronics giants face fresh challenges from U.S. computer makers such as Dell Inc., Gateway Inc. and Hewlett-Packard Co. All are here showing new gear alongside new entrants as diverse as Gibson Guitar Corp. and Shell Oil Co.

Shell's HomeGenie networking system controls home lighting, appliances and thermostats remotely, using a cell phone, computer or handheld organizer. HomeGenie also has a motion sensor tied to a Web cam that, when tripped, fires off e-mail or instant messages to homeowners.

More impressive was Gibson's Wurlitzer Digital Jukebox, a futuristic-looking silver machine scheduled to reach retail stores by fall. It reflects the company's belief that people don't want to manage home entertainment with complicated computers. The Wurlitzers help create digital music libraries without the hassle of ripping and burning music files on PCs.

"This is targeted at a demographic that doesn't want to fiddle with computers," said Philip Usatine, Gibson's chief technical officer. "We spent a lot of time on ease of use."

Stick a CD into the Wurlitzer and it lets people create playlists with a touch-screen remote control. An online Wurlitzer music subscription service also is planned. The 4ý-foot-tall deluxe model holds 1,000 CDs and will sell for about $1,800. A cheaper tabletop version also is planned.

Gibson's view of a stand-alone music system that hides technology from consumers — much as traditional stereos do — contrasts with the vision that computer industry leaders have of high-powered PCs helping people manage digital entertainment libraries. Microsoft, in particular, is working to simplify its software menus for recording and playing TV shows and music.

Asian electronics companies, meanwhile, are rolling out simple machines like the Wurlitzer, and products that attempt to bridge analog and digital media. Typical is Samsung Corp.'s box that records TV shows on either DVDs or VHS tapes and transfers media between the two.

This rivalry for control of home entertainment has been brewing for a long time but is intensifying as wireless home networks go mainstream.

At least 22 million American homes have broadband Internet access now, and most use wireless or Ethernet networks to share Internet connections among several computers.

Microsoft Corp. and Intel Corp. sense an opportunity to extend the PC's influence. Intel calls 2004 the year of the "digital home" and is pushing the notion that it can help different devices communicate using technology standards it developed with partners.

Intel is creating a $200 million venture capital fund to invest in digital home startups.

As tempting as all these devices and services may seem, consumers may be better off holding onto their wallets until computer makers strike a truce in their battle with consumer electronics giants.