Microsoft to unveil $199 STB successor to WebTV

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Sep. 28, 2004

CNET is reporting that Microsoft will roll out a $199 set top box (STB) running Windows CE next week. The device, to be made by Thomson and sold under the RCA brand, will be the basis of MSN TV2, the successor to WebTV.

Microsoft has made significant inroads in the set-top box market of late, as was evident at the International Broadcasters' Convention (IBC) in Amsterdam earlier this month. At IBC, Microsoft showcased the growing use of Windows CE within internet protocol set-top boxes (IP-STBs), and announced a market trial of its IPTV platform, based on Windows CE powered STBs from Thomson along with IPTV services from Bell Canada, Reliance Infocomm, SBC Communications, and Swisscom/Bluewin.

Microsoft has made a number of forays into the set top box market dating back to 1997 when cable operator TCI planned to build 5 million set top boxes running Windows CE. WebTV came a year later but fell victim to the bursting dotcom bubble of the late '90s.

Late last year, Microsoft announced a major push into television over IP under the moniker, Internet Protocol TV (IPTV). At that time, the company disclosed its intention to create a complete end-to-end solution spanning a range from video management and delivery to consumer TV experiences. Microsoft also showed off an IPTV set-top box prototype in its booth at ITU Telecom World 2003 in Geneva (pictured on the right).

According to CNET, the new Thomson-supplied STB goes well beyond the capabilities of the original WebTV box. For example, it includes wired and wireless network access that enables it to play music or movies stored on a PC in another room in the house. The new capabilities are directed at the emerging home broadband market, which Microsoft expects will represent over half the subscriber base in time, CNET says.

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