Pinnacle Systems Makes Digital Hardware Play

The latest entrant in this category is a television set-top box from Pinnacle Systems, Mountain View, Calif., that allows users to view and listen to PC-stored multimedia files on an LCD television. Called ShowCenter, the device can link any LCD television to multiple PCs over cable TV, Ethernet or wireless networks.

"There is a staggering amount of content on hard drives," said Scott Taylor, vice president of America Marketing for Pinnacle's Business and Consumer Video Division. "The PC is now the repository for digital content."

That observation hasn't been lost on an array of other companies that have unveiled similar devices in recent months, including Gateway and Linksys. Although those companies are much larger than Pinnacle, Taylor said he expects the strength of his company's software portfolio to help carry sales of ShowCenter. Pinnacle's video and audio editing tools are already used by 7 million customers and, among the major suppliers entering this space, Pinnacle has the most experience in terms of creating management software for digital images, he said.

Priced at $299, ShowCenter is slated to ship next month and be available through Pinnacle's distribution partners, which include D&H Distributing, Ingram Micro and Tech Data.

Solution providers serving the home market said they expect similar devices to flood the marketplace because entertainment-focused offerings--especially those that link to computing products--are a driving force behind digital convergence.

"Right now, the opportunities are in the audio/video system because that is the flashiest, sexiest area for consumers to recognize--making your A/V system digitally aware," said Chris Kaminski, president of FutureHome Guild, a Ferndale, Mich.-based network of home solution providers. "Now there's just a huge number of network-enabled components at your A/V system for playing MP3s."

While many of those devices may come across as plug-and-play retail products, solution providers can add value by making them part of bundled solutions that might include wired/wireless networking devices, digital cameras, flat-panel displays and televisions, photo printers, scanners, CD/DVD burners, external hard drives or audio/video software, industry observers said.

RUSSELL REDMAN contributed to this story.