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HP Exits Media Center Business

MCE writes "The first big adapter of Microsoft's Media Center Edition is quietly dropping MCE. HP is ceasing production of its Digital Entertainment Center, the only real success story for Media Center PCs in a living-room form factor. As the first company to embrace Microsoft's MCE, at a time when the platform was still half-baked, HP was simply spent by the time Vista rolled around. Now the company will put its resources into MediaSmart, a new line of TVs with a digital media adapter (not an MCE) built in. HP insists that its departure is not a statement about the viability of the Media Center platform."

3 of 99 comments (clear)

  1. Strangest business decision ever... by copponex · · Score: 4, Funny

    "HP insists that its departure is not a statement about the viability of the Media Center platform." Oh, yeah. I was making tons of money selling this product, but I've decided to stop. Not because it says anything about the profitability of the product I was selling, but, you know... just because. I'm not licking Microsoft boots either - let's face it, that's kind of an oxymoron.

    (phone rings... whispers... "$150 per copy of Vista?!")

    Ahem... on second thought, I respectfully withdraw that last statement.
  2. Rumor has it... by Shawn+Parr · · Score: 4, Funny

    that on their new systems changing the channel voids the warranty.

  3. I Have an XP MCE PC by UserChrisCanter4 · · Score: 4, Interesting

    I have a self-built MCE PC. It's very nice; it has a wonderful, reasonably speedy interface, records HDTV via antenna or cable (thanks to some specialized hardware), and allows me to do some nice HD upconverting for SDTV Xvid stuff and DVDs.

    I can not imagine any of my family, friends, or acquaintances buying one. They're expensive when done right, and they're really only useful for a very small portion of the population. In essence, MCE PCs have two big draws: a nice interface for music/movie/picture viewing and DVR functions. For a smaller group, upconversion and scaling is a selling point, but I doubt they register in the grand scheme of MCE owners.

    If people want DVR, they get it from their cable company (just ask TiVO). If they want HD DVR, they get it from their cable company. It is only a very small subset who genuinely benefit from the HD DVR features in XP MCE. It works very well with over-the-air recording, and can be hacked to enable QAM recording with certain hardware. My cable company happens to send some cable channels plus all local channels via unencrypted QAM along with my cable internet service, so I end up getting "free" HDTV service.

    I have a 1080p HDTV. Most people don't have an HDTV, and thus, don't care about HD DVR features. See above about what they do when they want to record TV.

    I have a nice home theater system set up; it is nice for me to be able to listen to my audio via that system. For many people that isn't particularly necessary. I also value the fact that what would be a digital cable box, a CD changer, and a DVD player are all bundled into one 3U-sized box, but for many people, the space occupied by a couple of additional boxes isn't a big deal. Even with that, I still hate the music playback interface for MCE, and usually exit out to iTunes for my audio.

    In essence: the current version of XP MCE (I can't speak to Vista) is well-done, well-featured, and user-friendly enough for my wife to sit down, watch and record HDTV and listen to music. If you have an HDTV and an extra $1,500 for a nicely-done MCE computer, XP MCE is a good solution. But it's really expensive to have a dedicated PC in a living room, and it's only relevant for a small section of the population. When the MCE PCs started shipping, most of the HP models were just higher-end desktops anyway - they were merely the next model up in the line. I highly doubt that many people were actually using them as a dedicated media center. For the gadgety few who truly care about having the proper, dedicated MCE box, I'd guess they're just as likely to order from one of the many niche white-box builders (or roll their own).

    IF (Huge IF) AppleTV gets some sort of official TV recording device, especially one with cable-card functionality, I could see it succeeding in this market. As it is, though, I imagine that there just aren't enough takers to justify the market for anyone other than niche builders and the occasional MCE laptop.