Tech Giants Expand into New Markets as PC Sales Slump

The big tech companies, including Microsoft and Intel, are diversifying into new areas as traditional personal computer sales continue to decline. Software companies like Microsoft are venturing into the gaming business, while semiconductor makers like Intel are exploring the children's toy and music industries. The companies are also developing new gadgets that complement their existing PC products, such as portable digital audio players and handheld personal digital assistants. This shift marks a milestone in the convergence of the PC and consumer electronics industries.

Key Takeaways:

• Microsoft is entering the video game console business with its Xbox, which is expected to be more popular than the Sony PlayStation 2.
• The Xbox consoles can render 3-D games with more clarity and functionality than other consoles.
• Ultimate TV, a service developed by Microsoft, allows DirecTV subscribers to pause, replay, and record television shows and surf the Internet simultaneously.
• Intel's new products, such as the $300 Pocket Concert and the PCE phone, are designed to be networked to home PCs.
• Intel is also showing off a prototype handheld personal digital assistant that doubles as a wireless phone.
• The "extended PC era" will see consumers experiencing a flurry of new products that can be networked to home PCs.
• Compaq unveiled a new home digital music system that can record and store up to 400 CDs and download and play music from the Internet.
• The home digital music system connects users' computers with their televisions and stereos.

Statistics:

• PC sales declined by 24 percent in December 2000 compared to the same period in the previous year (PC Data Inc.).
• Intel's Pocket Concert is priced at $300.
• Compaq's home digital music system can store up to 400 CDs.

Sources:

• PC Data Inc.
• Bob Keefe, West Coast Bureau, Las Vegas RCMP