New WebTV boxes dropping hard drives
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New WebTV boxes dropping hard drives
By Stephanie Miles
Staff Writer, CNET News.com
June 1, 1999, 5:20 p.m. PT
The next generation WebTV set-top boxes mark a significant departure from some
of the traditional features of the original devices, sources say.
Television set-top box maker WebTV is expected to relaunch its WebTV Classic and Plus
products tomorrow. The new boxes will be the first from the Microsoft subsidiary based on
the software giant's Windows CE operating system, and they will run on faster processors
than previous editions. Despite the spate of new features, the new class of WebTV devices
may be significant more for what they lack: namely, a hard drive.
WebTV is revamping the look and functionality of its set-top boxes based on input from
parent company Microsoft, its manufacturing partners such as Sony, and user feedback,
according to Sean Kaldor, an analyst with International Data Corporation.
"Microsoft hasn't announced it yet, but there are no more hard drives in the Plus or
Classic," said Kaldor, referring to the next generation Sony WebTV boxes. The devices,
which are expected to hit retail stores by the 1999 holiday season, will be significantly
slimmer than existing models: about the size of a paperback book, Kaldor said.
The decision to drop the hard drive was probably motivated by several factors.
Manufacturers like Sony and Philips are still charging $99 and $199 for the Classic and
Plus boxes respectively, but are now free from installing the $100 per unit component. The
decision will probably allow manufacturers some extra room for profit.
In addition, the hard drives included with the original boxes were never put to much use,
Kaldor said. "They know it, and I know it, and it's a fact, even if WebTV won't say it: The
hard drives were not getting used," he said. WebTV's initial vision of multimedia
advertisements and short videos that would be downloaded to the hard drive never
materialized, he said.
"This shows what happens when a product reaches a new generation," he said, adding
that the hard drive is among the largest contributors to manufacturing costs and system
crashes.
WebTV declined to comment.
The company will probably add some type of storage, such
as a hard drive or some type of memory to future high-end
set-top boxes, Kaldor predicted. For example, upcoming
set-top boxes which will work with satellite Internet access
provider Echostar will include hard drives.
The company's hardware evolution reflects the changes
occurring inside the company. WebTV, which was launched
with a hardware and service package, is now increasingly
breaking up the package to offer separate components to
partners and customers.
WebTV is on the verge of shifting to support Microsoft's
Windows CE operating system and later this month,
co-founder Steve Perlman will step down as president. Co-founder Bruce Leak will take
over as president.
"Microsoft isn't a hardware company, they're a software company," said Greg Blatnik, an
analyst with Zona Research. "Let the hardware manufacturer make the hardware and let
the WebTV folks provide the structure, the components, and the software."
WebTV was one of the first companies to offer simple Internet access through the TV, a
strategy now widely copied by cable providers and other high-speed Internet access
companies, some of which have partnered with WebTV. The company now counts about
800,000 subscribers and is growing steadily.
Related news stories
o WebTV adding Windows CE May 28, 1999
o WebTV co-founder steps down May 25, 1999
o Microsoft, EchoStar in Net satellite deal January 6, 1999
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