FINANCE/BUSINESS
Sony Ahead In Bundling Home
Media Ken Belson 01/28/2002
International Herald Tribune Page 13 (Copyright
2002)
Just when you thought it was safe to curl up on the sofa
and hide from the world, some of the largest technology
companies are stepping up efforts to invade your living room
with products designed to link televisions, computers and
other home electronics. The makers of these high-end gadgets
hope to redefine how homeowners watch television, surf the Web
and listen to music.
Sony Corp.'s Airboard, a wireless screen first introduced
to the Japanese market in December 2000, was the first attempt
at such a radical redefinition of home entertainment.
Microsoft Corp. and others have since followed, making
expensive bets that consumers will want to roll their
computers and home electronics into one, and access the
devices and the Internet from anywhere in the home. As Richard
Chu, a Tokyo-based analyst at ING Barings Securities, puts it:
"Everyone wants to be untethered."
The concept of the networked home is not new, but more
sophisticated wireless technology, the proliferation of
high-speed Internet services and streamlined hardware make the
latest set of offerings more user-friendly and, in some cases,
cheaper.
Sony recently showed off the Airboard2, a
home-entertainment controller and wireless television as small
and light as a laptop. A separate base station props up the
screen, recharges the battery and serves as a hub connecting,
for example, a DVD player, a videocassette recorder,
television and other electronics, including those not made by
Sony. Airboard2 is designed to let users control these
devices, as well as type e-mail and surf the Web.
The key to the upgraded Airboard is its ability to
wirelessly link to broadband Internet connections. This allows
one person in the home to watch one program on the Airboard
while someone else watches another on the television.
Improvements to the Airboard2, which is available only in
Japan, include a larger, brighter screen (12.5 inches, or 31.7
centimeters), longer battery life (up to two hours) and ports
for downloading and printing digital photos. Extra base
stations can be set up around the house.
The Airboard is the brainchild of Satoru Maeda, 50, the
free- spirited head of Sony's Personal IT TV Division, who got
the idea a decade ago when he was developing digital cordless
phones that sat in rechargers. "I knew that the digital phone
would need base stations and if those were there, you could
send all types of information through it," Mr. Maeda said.
"That's when I struck on the idea of developing a home
network."
Mr. Maeda also saw that Web-enabled TVs forced users to sit
near their televisions to surf the web. "Then it came to me,"
he said. "If I could pick up the TV and carry it while it was
connected, I could change the culture of watching television
you could take it to the toilet, bath or bedroom."
Moxi Digital Inc.'s Moxi Media Center takes a similar
approach in that it puts the television at the center of the
network. Created by Steve Perlman, the inventor of WebTV, Moxi
is part television receiver, part video player and part
digital jukebox, all linked to the Internet. Similar to TiVo
Inc.'s set-top digital video recorder, Moxi has an 80-gigabyte
hard drive that stores 60 hours of video and hundreds of CDs.
The device can be linked to four television sets to allow
family members to watch different shows simultaneously. The
television receiver connects to a satellite dish or cable
line, allowing Web surfing and video on demand. "It's a
digital entertainment hub that does away with having 10 remote
controls," said Gina Miller, a spokeswoman for Cl Inc. The
Moxi Media Center will be introduced by the end of the year.
The company has signed a distribution deal with the satellite
TV provider EchoStar and is negotiating with other vendors.
Microsoft takes a slightly different approach. While Moxi
puts its stand-alone hard drive at the center of the home
network, Bill Gates, the Microsoft chairman, sees the personal
computer as the home network's core. Microsoft says it will
roll out a suite of new products, including Freestyle, an
entertainment media center for the PC built in conjunction
with Hewlett-Packard Co., NEC Corp. and Samsung Electronics
Co.
For those who want their computer on the run, there is
"Mira," a code name for a wireless flat-panel screen connected
to a computer running the Windows XP operating system.
Borrowing from the Airboard concept, the portable screen is
designed to allow users to work on their computers from
anywhere at house, as well as control DVD players and other
electronics. Microsoft has not specified release dates for any
of these products.
The Sony and Moxi devices were developed using little
market research, instead relying on their inventors' hunches.
Sony also broke with practice and let four "interface
designers," who normally inspect prototypes developed by
engineers, design the Airboard's screens. This approach
resulted in a product that is easy to use, but the Airboard's
touch keyboard is small, so typing more than rudimentary
e-mails is difficult.
Inevitably, these products raise questions about how much
gadgetry consumers will use. Having Internet access and
control of your home entertainment network is great, but
analysts say that most consumers buy products for one primary
use and rarely use the additional functions.
"TV anywhere is a killer app, but why even have a computer
on it?" asked Tim Clark, strategy director at ION Global, a
Tokyo-based Internet consultancy. Mr. Clark said that while
the portable, rechargeable TV was a great idea, the other
functions would probably be rarely used. Sony will not release
sales figures for the Airboard, but analysts say sales have
been limited. The upgraded version will be released in Japan
this month and retail for about $1,000. Sony is considering
releasing Airboard2 in the United States later this year.
Moxi will be leased via cable and satellite television
providers for about $50 a month. Microsoft is developing the
software and the concept for Mira, and is hoping that
equipment manufacturers such as Dell Computer Corp. or Compaq
Computer Corp. will produce and sell the equipment.
Matsushita Electric Industrial Co., Sanyo Electric Co.,
Samsung and other electronics makers also are designing home
network systems, but many of these take a more utilitarian
approach, linking microwave ovens, washing machines and such
hardly exciting stuff.
Some analysts say the approach taken by Sony, Moxi and
Microsoft could be more successful because most gadget lovers
probably would rather spend their money on entertainment than
on cutting-edge housekeeping.
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