Microsoft's TV dream moves closer with $20bn launch

LONDON - After several failed attempts to crack the TV market, software giant Microsoft is launching another attempt to put the PC at the centre of living room and take on the likes of TiVo and DVD makers.

Bill Gates, chairman of Microsoft, is set to unveil a new version of Windows XP Media Center in Hollywood later today, which aims to turn the PC into a TV set.

Gates has allocated $20bn (£11.2bn) to spend over the next six years in developing the technology, which amounts to half the company's entire research budget till 2010. The company has almost 300 patents on recent TV innovations, which it is planning to carry on testing.

The software comes with a built-in DVD player, jukebox, digital picture album and recorder and, like personal video recorder technology, it will record programmes to watch later.

Another key feature is a remote control that replaces the keyboard and offers a simple non-Windows based screen, offering speedy access to the entertainment services on offer.

The first two editions of the software have not been widely accepted in the US, picking up just 3% of the home computer market and mostly adopted by the technopile computer user.

The earlier versions, which came with a price tag of around $2,000, were also beset by poor viewing quality on TV and video. The latest version of Media Center has none of those problems and will sell for around $1,000.

However, that is still pretty expensive, considering US consumers can pick up entry level TiVo systems for as little as $100.

Microsoft will not be taking any chances on another failed attempt like WebTV, its attempt to allow consumers to connect to the web by their TVs. That technology failed to take-off despite billions invested in it.

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