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To: Bob Strickland who wrote (33084)5/9/1998 10:34:00 AM
From: John Rieman  Respond to of 50808
 
Sega and ATI. DVD/game machines...................................

msnbc.com

ATI's next-generation set-top box beat out the worst-kept secret in the industry, Sega Enterprises' Katana system, in showing itself to the world.
The Japanese game machine maker is rumored to be working with Microsoft and Japanese computer maker NEC to design a game machine that connects to the Internet and runs on Windows CE.
Whether a DVD component will be part of the system is unknown.

A WIN FOR WINDOWS CE
For Microsoft, whose Windows CE operating system is leading the way into the PC set-top market, ATI's technology demo can only be good news.
The ATI system is the first debut of Windows CE in an all-in-one device. Microsoft has been working on tailoring the operating system to the market.
In the ATI device, Windows CE only takes up 2.5 MB. Although the drivers and the hardware are fairly early in the development cycle, there was enough solid technology running to raise some eyebrows.
The ATI system is run through an infrared port from a cordless keyboard. The prototype on display was equipped with USB ports and a modem. The demo system ran DVD movies, could browse the Web and play Windows 95 games, though that requires a software patch be included on the game disk.
In addition, the demo on display had a small video camera attached, making video phones a no-brainer.

HOT OR NOT?
The technology gets high marks for being cool, but will it sell?
"This gives users a DVD player, game player and set-top box all in one," said Kaufhold. "If a company can sell the box for $599, it makes economic sense for the consumer."
But that doesn't guarantee the product will sell, he continued. "PC set-top will definitely be a new segment, but it may not be a hot seller."