Media Center PCs?
PC Makers revealed plans to push Microsoft's new Windows XP Media Center Edition 2004. The upgraded version of Windows from Microsoft which attempts to provide an integrated PC entertainment system with "user interface for viewing television programs, video, photos and other multimedia files--by incorporating photo editing and the ability to pause and rewind television shows." (more info)
The new OS appears to allow resellers and 3rd parties to provide custom experiences, with Napster claiming that the new Napster 2.0 will have Media Center integration, while HP is planning a Photosmart PC for digital imaging enthusiasts.
Steve Jobs has spoken against convergance in the past, and instead has been focusing on a "digital hub" strategy, though this integration may blur the lines.
Meanwhile, a recent survey reports that 51% of consumers are willing to record content on their PCs for playback on the TVs, while only 34% would do so if they had to watch on their desktops.
Roger Kay, an analyst, provides this criticism of the integration: "You never quite get the (consumer electronics) experience .... It's still ultimately a Swiss Army knife, rather than a katana (a Japanese sword)."