Microsoft, et al, Show Pre-Season Support For Media Center PCs

by Toni Duboise
Senior Analyst, Desktop PCs

Vendors Tap Media Center PCs for Upcoming Holiday Season

Like athletes preparing for the post-season, PC players are now vying for position in the all-important Q4 holiday shopping season. In the absence of a showstopper or "killer app" for the forthcoming 2003 holiday shopping season, manufacturers are focusing on one of the few nascent PC products that has actually performed better than expected during the past year - the Media Center PC. Despite the skepticism surrounding the initial Media Center PC premiere on October 29, 2002, an estimated number in the tens of thousands of Media Center PCs have shipped since inception.

Of late, the Media Center PC movement has been fortified with an enhanced version of Microsoft's Windows XP Media Center Edition OS coupled with several new hardware releases by longtime OEM partners such as HP, Gateway and ViewSonic; and new PC heavyweight partners - Dell and Sony - who have joined the Media Center PC family just in time for pre-season.

For novices in the Media Center PC arena, these computers emerged last year as a digital hub device designed to provide central storage, manipulation and an access point for the infinitesimal number of digital photograph, video and music files accumulated by today's increased audience of digitized PC+ consumers. With the multimedia-centric interface offered by Microsoft's then new operating system, Windows XP Media Center Edition (MCE), the Media Center also commingled the aforementioned digitally enhanced computing applications with Tivo-like television capabilities into one cohesively wired, remote controlled unit.

Microsoft Brings Harmony to Media Center PCs

All of the most recent Media Center PCs emulate the same objectives presented by the initial batch of Media Center machines. The newest enhancements began with Microsoft's second release of the digital media-centric Media Center Edition operating system. The new OS shed its code name "Harmony" and was officially launched as "Windows XP Media Center 2004" on September 30, 2003.

The specific component improvements of Windows Media Center 2004 over the original 2002 version includes faster boot-up performance, digital photo editing (rotate, zoom, red-eye touch-up, etc.) and printing capabilities, expanded CD burning abilities, controllable FM radio access, and improved slide-show viewing. In addition, there are a number of on-demand content providers such as CinemaNow, Movielink, Napster and PrimeTime Deluxe allowing access to digital video and music for downloading or accessing through the Internet. The only hardware dependent attribute is the FM tuner, which is built on top of the TV Tuner supplied by the OEM vendor. All features can all be executed via remote control.

To further its cause for this borderline convergent marketplace, Microsoft has waived the traditional OS upgrade fee and has chosen not to charge OEM vendors for Windows Media Center 2004 upgrades. OEM vendors, on the other hand, may choose to charge a nominal fee for existing owners of the original Media Center Edition OS.

New Media Center PCs on the Block

As mentioned previously, Microsoft's new OS announcement was accentuated by the Media Center PC inauguration of Dell and Sony.

Direct giant Dell chose an almost effortless approach and simply incorporated Microsoft's next-generation Windows XP Media Center 2004 operating system within its existing line of Dimension desktop products instead of committing a brand new chassis design as it did last Spring with its game-centric Dimension XPS introduction. Microsoft's new Media Center OS is available within the Dimension 4600, 4600C SFF, and 8300 series and is offered on both Home/Home Office and Small Business websites. For the new Dimension 4600 and 8300 Media Center PCs, Dell has raised the performance bar with components such as the processor option (P4-2600/HT base), optical drives (DVD base) and graphics adaptors (ATI WonderPro 9000), which along with the Media Center Edition OS premium boosts the total base price. (Side-by-side price/performance comparisons against existing Dimension 4600 reveal a $130 premium associated with the Media Center Edition OS.)

Dell's base prices start at $839 for the Dimension 4600 selling on the Small Business web site or $909 for the same Dimension 4600 available on the Home / Home Office web site. Like all Dell desktop product lines, the Small Business web site portal sells products for a lower price than the Home web site portal. It should be noted, however, that Dell originally limited the Small Business Media Center PC configurations to a single optical drive solution, which forced consumers to turn to the more expensive Home web site for the more attractive dual drive options. (This was just recently reversed and now both Home and Small Business web site portals offer dual optical drive options.)

Dell's new Media Center PC base configurations and associated pricing are detailed in the chart below. Despite the impressive base price structure, Dell's base systems are stripped down versions of competing Media Center PCs. (An additional chart with more conventional Dell Media Center PC evaluations is also provided down below alongside their Sony counterparts.)

Like Dell, Sony's brand new line of RZ Media Center PCs are offered in an almost mirror image of its former RZ series chassis design. The only cosmetic difference is the enlarged center band running vertically through the face plate, which is approximately twice the width of the band accent for the RZ predecessors. ARS expects that Sony's new RZ Media Center PCs will replace the majority -if not all- of the manufacturer's high-end desktop placements. The two initial systems come equipped with P4 Hyper-Threading processors, base 512MB RAM and 160GB hard drive options, 128MB GeForce 5200 graphics, Windows XP Media Center 2004 OS, in-house GigaPocket PVR software and a dual optical option that includes the more flexible DVD+/-RW drive.

Sony's feature sets are more akin to the Media Center PCs available in the marketplace since inception. The manufacturer's price points reflect newer-technology premiums at $1,599 for the 2.8GHz P4/HT and $2,199 for the 3.2 GHz P4/HT.

In head-to-head comparisons, however, Sony's performance premium either match or beat those is offered by Dell. This is exhibited in the chart below. (Only Dell's 8300 series offers access to the same performance components offered by Sony.)

An overall comparison between these two new Media Center PC players will show that Sony is positioned for a much easier transition to the digital media entertainment space than Dell. Sony not only has a well-established mind share in the consumer electronics (CE) field itself, but was the first to bring personal video recording capabilities to the PC with its release of GigaPocket. GigaPocket compounded with click to DVD and a handful of other in-house developed multimedia software enhancements that come standard with the VAIO series have provided Sony with an innovative reputation within the PC+ space.

In Dell's corner are its well established PC brand share and a new release of the "Dell Media Experience," which is designed to provide similar digitally enhanced capabilities already available with rival PCs like Sony VAIO.

Harmony Updates to Existing Media Center PCs

In addition to the new Dell and Sony entries into this space; HP, Gateway and ViewSonic have all introduced new Media Center PCs simultaneous to Microsoft's Windows XP Media Center 2004 (a.k.a. Harmony) launch.

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