Intel Unveils Chips for Media PCs
Hoping to speed acceptance of personal computers that manage digital entertainment, chip maker Intel Corp. announced Wednesday new technologies that aim to make it easier for PCs to record and play video and music.
The world’s largest chip maker wants the “VIIV” brand to popularize using PCs for digital entertainment the way its Centrino chips did for wireless computing.
VIIV, which rhymes with “dive,” represents Intel’s bet on the future of PCs as the center of a wired living room.
VIIV PCs will come on the market in the first quarter of 2006 and sport colorful stickers so customers will recognize that they are designed to record, store and play back music, photos, home videos and television.
“If the service is consistent, it should be strong going forward,” said Richard Doherty, director of technology consulting firm Envisioneering Group.
Much of what VIIV computers will offer already is possible on PCs running the Media Center Edition of Microsoft Corp.’s Windows operating system, which allows users to record TV broadcasts. But Microsoft and computer makers have not aggressively marketed Media Center PCs and sales have languished.
Although the move is a good way to raise awareness of the PC’s capabilities, it’s not a slam dunk, said Roger Kay, president of technology researcher Endpoint Technologies.
“The risk is that they have a limited window to get it absolutely right because consumers are relatively intolerant of poor experiences,” he said.
Santa Clara, Calif.-based Intel in recent years has branched beyond PC processors, targeting home entertainment and communications technology.
VIIV “is an opportunity for Intel to sell more processors by selling another PC to your home,” said Kevin Krewell, principal analyst with In-Stat MDR. “They’re trying to grow the business of lifestyle in the living room.”
VIIV computers will run on dual-core Intel processors, which pack two computing engines onto one chip. They will have instant on/off capability, after initial boot-up, and will work with a variety of TV sets and other entertainment devices.
Intel spent heavily to market the Centrino wireless package. In late 2002, before the Centrino campaign, fewer than 7% of notebook computers sold in the U.S. had wireless capability, according to Intel. Today, that number is around 85%.
Intel supplied marketing assistance to computer makers that agreed to use the Centrino package of Intel processor, chipset and wireless radio chip and to put a Centrino sticker on the notebooks. Intel would not give details of VIIV’s marketing budget or potential pricing for VIIV computers.
“Aside from packaging silicon and giving it a name, the implication is that Intel will put a lot of marketing development funds and advertising behind VIIV to support the computer companies that end up making these computers, and everybody will,” said Endpoint’s Kay.
Spokespeople for Dell Inc. and Hewlett-Packard Co., the world’s two largest PC makers, said the companies were evaluating VIIV as a way to increase awareness of the multimedia computers they sell.
“Technology from Intel and Microsoft are key enablers for the digital home vision we have, and we believe in an ecosystem where the PC is at the center of that,” Dell’s Venancio Figueroa said.
Intel shares slipped 19 cents to $25.53 on Wednesday but are up 9.2% year to date.
