“The set-top box phenomenon is opening up the processor market
to a wide range of competitors, and in this new world Intel is only
one of the pack.”
“The absence of a ‘Wintel’-like duopoly largely emerges from the
technological and economic circumstances of this market. Set-top
boxes at this point simply don’t appear to need–or they can’t
afford–the computing power offered by chips based around the Intel
architecture.” “Cost, in many ways, is key in this market. Set-top
boxes may sell for as much as $500–but in reality they will have
to sell for closer to $200… a price ceiling that puts a lid on
silicon costs. Intel’s low-end Celeron chips start in the $65
range. Processors based around the MIPS or Hitachi designs,
however, might sell in the $20 range…”
Intel hedges its bets
” ‘We have a separate standalone group focused on these devices,’
Otellini [general manager, Intel Architecture Business Group] said.
He emphasized that Intel is not tying its opportunities to
Microsoft. The set-top group is working with the Redmond giant, but
also with Be Incorporated, Linux developers, and Wind River
Systems.”