Analog Kid said:
I don't see people using their TVs as computer monitors. There are usually either too expensive or too big. They're usually in the wrong room. Back when computer monitors were about the same resolution as current TVs, people may have hooked them up to play but if they got serious about the computer as a computer then there was a separate TV or monitor in the office specifically for the computer.
Convergence.
You may not see people using their TV as a monitor, but I quite frequently see people using their computers as a TV/DVD/Music playback unit. Steve has spoken against this being something Apple wants to pursue, but that doesn't mean that other companies won't try to exploit a potential market. Also, given the size and definition of HD TV, well...
HDTV - 16:9 aspect, 1920x1080 or 1280x720 pixel pattern,
HD-ready monitors - Oddly similar.
An interesting note: By 2006, the FCC has declared that NTSC must be shut off. All content will be digital.
On the other hand if this is simply going to be used as a "media center" then why not running Apple code? Apple doesn't have a product in that market segment, and I really don't think that would cannibalize many Mac sales. It certainly hasn't cannibalized PC sales... By the time the price/performance ratios come down to what you think is a danger zone, current products would be obsolete and Apple could decide if this was a good strategy or not and pull out if they chose to.
The iPod was such a success because Apple made it easy to use, appealing, and seized a market that had not been effectively exploited yet. Digital media through set-top boxes is about to get very, very crowded, with Sony, Microsoft, and others all leaping into the mix.
In the end, an Xbox won't compete with Macs because it's too limited and too focused. Media center, maybe. But certainly not general applications. People don't word process on their TVs. Yes, they could, but they don't. They might run a slide show on their TVs, but they're not going to do image manipulation that way. Fundamentally different markets.
Convergence...
See above. HDTV monitors are spreading, and they're encouraging device convergence for multiple purposes, and there's a nice market in all-in-one formfactor media center PCs at the moment. It doesn't cost a whole lot to get
a decent machine with built-in Tivo or Tivo-like functionality on top of its normal functions, and you can just slap one of those nice, big HDTV monitors onto it in order to increase functionality.
People play games on bigscreen TVs. The only reason that they don't do other things on them is limitation of technology and lingering habits.
Before 1984, people didn't use mice, either.
So what?