Microsoft is working on a top-secret home entertainment device code-named HomeStation. The PC/Xbox hybrid will run a version of Windows to form a home entertainment hub. The device will finally turn the idea of digital convergence into a living room reality. Following in the footsteps of the PC-influenced Xbox, the device is likely to be a non-upgradeable sealed unit, with a system board based on nVIDIA´s nForce, boasting GeForce graphics and Dolby Digital sound. HomeStation will come equipped for an array of online and offline activities: a sizeable hard drive, broadband connection and compression technology based on Windows Media Player 8 - included with Windows XP - all point to a video-on-demand role.
Sources say a Microsoft .NET server will dish out movies, music, messaging, games and TV programming - and with a stonking hard drive, it´ll also double up as digital TV recorder (à la TiVo). In addition, it will wirelessly interface with portable devices such as digital cameras, PDAs, MP3 players and telephones using HomeRF or Bluetooth protocols. It may even manage home automation.
Secrets and spies
Games-wise, it´s anticipated HomeStation will play both PC and Xbox titles. Indeed, Microsoft´s Xbox will pave the way by establishing Microsoft as a home entertainment brand. But with the Xbox launch gearing up for a showdown with the PS2, Microsoft is keeping HomeStation under wraps. One source close to Redmond was shocked when PCFormat asked about the HomeStation: "I can´t say a thing. Listen, the thing is, Microsoft is sidestepping this so as not to distract from the Xbox. It´s really hush hush hush - I don´t know where you heard this!" Well, heard it we have. And we´ve had people from Microsoft, Intel, AMD and nVIDIA all alluding to the HomeStation, but refusing to ´fess up on the record. When pressed, Microsoft´s Senior Vice President (Games Division) Robert J Bach insisted, "This has nothing to do with me." One flustered Microsoft analyst stumbled: "I haven´t heard of HomeStation, but I know that Angela has." And an insider at a potential partner said, "It´s no secret to anyone in this industry. The first thing people say is you´re not even supposed to know about it, let alone its name."
.NET profit
HomeStation is critical for Microsoft, which is keen to free its corporate anchor from the PC. With the market approaching saturation, the firm is suffering diminishing returns on each version of Windows, and is looking towards the living room for growth. More significant is the role the HomeStation will play in Microsoft´s internet vision. The broadband device puts the company´s .NET strategy into your front room. "They´ll sell it cheap, with the revenues coming from online services and profiling," revealed one source. "What´s the pressure to push people into buying this? It´s convergence - video on demand, software rental, games rental and music." All of which is already on the cards with Microsoft´s WebTV service in the US and its 24 per cent stake in Telewest, whose Blueyonder broadband network serves 4.9 million UK homes.
Because HomeStation will function through a Microsoft gateway, the device will be poised to profile the activities of its users straight back to Microsoft. Information is power and, as advertising becomes increasingly targeted, it´s a fast track to big bucks.
The device´s launch is heavily dependant on broadband becoming widely available, but you can expect the HomeStation marketing machine to be gearing up by this time next year.
