With the kit installed, the Xbox performs the same function as
Media Center Extenders (MCEs) recently introduced by
HP and
Linksys. Except, you can also play games on the Xbox.
Media Center Extenders are a key element of Microsoft's digital entertainment strategy centered around Media Center PCs running
Windows XP Media Center Edition 2005. The MCE enables digital music, photos, videos, and TV shows stored on a Media Center PC to be viewed or listened to anywhere in the home. The Xbox MCE upgrade kit also supports DVD movie playback, according to Microsoft.
The upgrade kit consists of software that runs as an Xbox game, an infrared receiver that plugs into the Xbox game port, and a remote control used to play the media files on the TV. The network connection between the Media Center PC and the Xbox is either by means of the console's built-in Ethernet port, or using an optional Xbox-compatible wireless adapter. The Xbox MCE user interface is similar to that of a Media Center PC in its "10 foot mode."

Media Center Extenders run a version of Microsoft's Windows CE embedded OS, whereas Xbox runs an OS derived from Windows XP.
According to the
Xbox website, the Media Center Extender kit should be available before the end of this month, at a suggested retail price of just under $80.
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