Overview: To establish the PC as home entertainment hub, Microsoft is improving Windows' digital media capabilities, working with partners to develop compatible devices and content, and promoting the Windows Media Platform
Improving the Hub: Windows Media Player 10
Overview: The latest version of Microsoft's digital media player approaches the ease-of-use offered by Apple's digital media products, while presenting a greater choice of content sources and devices
Improving the Hub: Windows Media Center
Overview: To broaden the audience for Windows XP Media Center Edition, Microsoft has improved its video support and began making it available to OEMs for use on less-expensive hardware
Building Spokes: Devices Link to Home Hub
Overview: Microsoft is relying on partners to create a wide range of portable and networked entertainment devices that connect to a Windows PC
Content: MSN Enters Music Store Race
Overview: Microsoft's online music store provides a high-profile distribution channel for Windows Media content; it may also be necessary to stop Apple's lead from becoming insurmountable
Beyond the PC
Overview: Xbox and the Microsoft TV platform are hedges against market changes that could reduce the PC's relevance in the home, but Microsoft sees long-term opportunities in both businesses as well
Conclusion: Betting on Convergence
Overview: The biggest challenge to Microsoft's home entertainment strategy is convincing consumers to use a computer as their primary home entertainment device instead of dedicated consumer electronics device
Resources
Overview: Links to more information about the products and technologies discussed in this ‘Microsoft's Home Entertainment Strategy’ report
Appendix: The Windows Media Platform
Overview: The Windows Media platform supplies a standard set of software components for encoding and protecting digital audio and video