Rumors that Google will sell its own branded PC through WalMart are circulating in the web sphere. Many may scoff at the idea that Google making its own PC. But I would not be surprised that Google will get into the hardware side of content delivery.
So far the web content is mainly of text. But video content on the web is increasing exponentially. One drawback of video on the net is that you have to view it on a PC. But the best means of consuming video content is TV. That is why MSFT is so keen on IPTV and Media Center PC. Basically one has to figure out a way to transfer content from PC to TV, in a seamless way that should not take an engineering PhD to set it up. The web content in current form is not suitable for TV viewing from several feet away. One has to figure out a way to re-format the web content, particularly the video content, so that it can be easily viewed on TV. To accomplish this may involve tight integration of software and hardware. It looks like Apple has got both hardware and software to tackle this problem. Microsoft's Xbox may potentially be morphed into something that can deliver web content to TV. But Google, Yahoo and AOL do not have any hardware business. Yahoo seems to be partnering with TiVo and set-top-box vendors. But eventually it needs to make its own media gateway.
So Google may not be trying to make its own PC (that is easy. Google has made more complex servers for itself). But what Google is wroking on may be something that can transfer content from the web to your TV set.
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