Silicon Valley Watcher writes about Microsoft’s next generation Xbox game console, code-named Xenon and what it means:
Xenon will be the first in a series of PC-like devices that are tied directly to games, music, movies and simple applications through mostly web-based services.
This is the trend. The PC-centric model is disappearing as digital devices designed for specific purposes such as digital cameras, cell phones, portable digital audio players, and portable digital video players don’t rely on PCs as a content/communications gateway.
Instead, the developing model is to use tightly bundled hardware, software and services to provide secure digital rights management (DRM) and protected access to aggregated content. This protects against unlawful hacks and limits damage to the platform.
Microsoft said that Xenon would be more of a digital entertainment hub than the current Xbox. This would give it a ready platform for its DRM technology and for its MSN online network.
The loser in such a future is Intel, since the platform hardware is less important than the services it channels.