Show of Faith: Compaq Computer Corp. is...

Show of Faith: Compaq Computer Corp. is slated to unveil today a powerful PC combined with a big-screen TV called the PC Theater, aimed at buyers the computer giant has dubbed “digital upscale believers.”

Compaq’s home PC Theater system was co-developed with Thomson Consumer Electronics, the owner of RCA, and will retail at $4,999, analysts said. It will compete with Gateway 2000 Inc.’s “Destination” system, which created a stir among audiophiles when it was introduced a year ago but has yet to make a lot of money.

The latest Compaq entrant is a hybrid PC/TV with a 36-inch screen, a wireless keyboard and a remote control for the PC and TV functions. It can connect to a cable box, a digital satellite programming device, VCR, laser disc player and a digital video disc player.

Consumers will be able to watch TV while simultaneously searching the Internet, play interactive PC games, send electronic mail, or watch films recorded with a video camera on a big television screen with surround-sound speakers.