Sunday, September 27, 2009

The Brewing Storm for Microsoft

Apparently this nettop (netbook+desktop) from Acer is out now and readily available at Newegg for $200:

Here’s a more detailed article about the Acer AspireRevo from six months ago on Gizmodo:

If this kind of hardware becomes crazy pervasive, it could be a big problem for Microsoft in the long term, i.e. the cost of Windows and Office would be significantly more than the cost of hardware. Robert X. Cringely predicted this would eventually become a big problem for Microsoft and it seems with hardware being scaled down so much this is a portent of things to come.

Which is why I have often said that Microsoft made a brilliant move with getting into the gaming console market. Today the XBox360 is a low cost hardware platform whose storage makes it capable of running different programs and in my view Microsoft's entry into the gaming console market was a hedge against this transition. At least I would hope someone inside of Microsoft was sufficiently prescient and saw the potential problem of home PCs being displaced once HDTVs truly became pervasive. Simply because, the top three computing activities in the home are browsing, email and gaming. If you've had occasion to see the web browser that runs on the Playstation 3, it is functional on many web sites. Again, a portent of things to come. Unfortunately for Microsoft every shipped XBox shipped means no license for Windows and Office going alongside it. And Windows and Office accounts for approximately two thirds of Microsoft's revenues.

While the HD playback on the Acer AspireRevo is an issue, things are brewing to remedy this problem:

While this VIA daughterboard currently is too big to fit into the Acer AspireRevo it happens to be perfect for Netbooks. Now imagine when this VIA PICO hardware winds up being just a single die (chip). Then you are talking about having a $200 PC for your living room capable of delivering content off the Net that does not have the usual hassle factors – cost (the upfront cost and your utility bill going up because of your new space heater), noise (fans) and size (bulk).

No comments: