Media Center PC Sales Skyrocket in U.S. Retail Market

SAN DIEGO, CA –August 29, 2005 – Sales of Media Center PCs have skyrocketed since July 9, according to a recent study by Current Analysis. For the week ending August 20, 2005, Media Center PCs accounted for 43% of all desktop personal computers sold in the U.S. retail market, based on data from a sampling of U.S. retailers.

Accounting for this phenomenon was a decline in pricing for Media Center systems, with the average price dropping below $900 for the first time ever. In addition to the more affordable price points, Microsoft has lead the charge to promote Media Center PCs at select retailers in an attempt to generate a higher level of interest for the platform.

Senior Director of Research, Matt Sargent states “The desktop market is in dire need of anything that will differentiate it from laptops, which have been stealing sales over the last year. Media Center, with its focus on performance-centric tasks, such as manipulating pictures, video and audio content, is one key differentiator. The continued success of the desktop form factor is reliant upon the success of Media Center--this is the reason we are seeing leading manufacturers such as HP rapidly shift their desktop offerings to Media Center.”

Additional results of the study:

71% of the Media Centers sold in the week ending August 20 did not have a TV tuner.
53% of the Media Centers sold in the week ending August 20 utilized AMD’s Athlon 64 processor.
67% of the Media Centers sold in the week ending August 20 used a 250-GB hard drive.

Press Contacts:

Matt Sargent, Senior Director of Research
Phone: 858-729-5376
msargent@currentanalysis.com

Chalise Zolezzi, Director of Public Relations
Phone: 858-729-5287
czolezzi@currentanalysis.com

About Current Analysis: Current Analysis is the industry benchmark for excellence in navigating today’s markets, serving as a critical, third-party expert in market and product analysis by offering competitive response solutions in the telecommunications, information technology and consumer electronics industries. By providing the most comprehensive and rapid intelligence through our CurrentCOMPETE™ platform, Current Analysis enables sales teams, marketing professionals, product managers, and executives to continuously anticipate and counter competitive threats while offering solid solutions to emerging obstacles. As a global company, Current Analysis has a worldwide network of researchers, competitive analysts, and industry experts to identify market and competitor threats from a frontline perspective, and offer conclusive, tactical advice on market strategy, positioning and response objectives. Current Analysis clients include equipment manufacturers, service providers, major multinational enterprises, financial institutions and selected members of the press. Please visit Current Analysis at www.currentanalysis.com

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