PC Makers Facing a Flop In Home Entertainment {corrected}

[David Farber <dave () farber net>]

Begin forwarded message:

From: Bob Frankston <Bob19-0501 () bobf frankston com>
Date: November 2, 2005 8:36:03 PM EST
To: Dave Farber <dave () farber net>
Subject: PC Makers Facing a Flop In Home Entertainment {corrected}

Stupid Outlook sent this before I was able to finish writing it!!!



http://online.wsj.com/article/SB113090575716186129.html?mod=djemTECH



This shouldn’t be a surprise because while these companies think they  
were going to bring their experience into  a new marketplace they  
failed to understand the real reason for their success – the  
marketplace dynamic I keep referring to as “opportunity” vs “solutions”.



In particular, confirming to the DRM requirements guaranteed failure  
because the had all the complexity of connectivity elements of  
consumer electronics systems PLUS all the complexities of making PCs  
work. It’s a formula that guarantees failure. This is why all this  
DRM nonsense is doomed.



Unfortunately it’s hard for these companies to really understand  
consumer electronics. I was amazed when I was at Microsoft how little  
they understood consumers and computers and they seemed to take the  
worst elements of each marketplace and combine them. Again and again.



I’ve been writing about this for a long time as in http:// 
www.frankston.com/?name=InternetandConsumerElectronics. Consumer  
electronics companies need to cede control to the consumers and  
computer companies must stop trying to fix complexity by trying to  
make their myopic scenarios work and thus making every other scenario  
problematic.



They need to recognize their success comes from providing  
opportunities not solutions. But, of course, they aren’t capable of  
hearing this



PC Makers Facing a Flop In Home Entertainment
Dell's Retreat Is Latest Sign
That Consumers Still Prefer
More Traditional Offerings

By GARY MCWILLIAMS
Staff Reporter of THE WALL STREET JOURNAL
November 2, 2005; Page A1

The personal-computer industry's march into the living room is  
proving to be a slog.

A few years ago, the nation's Big Three PC makers charged into the  
market for big-screen TVs and digital cameras and music players,  
counting on their PC prowess to catapult them from the home office  
into home entertainment. They planned to exploit PC-style economics  
-- based on off-the-shelf components, low markups and high turnover  
-- to give consumers new choices and offer the big electronics  
retailers a lesson in low-cost selling.



…





Bob Frankston

http://www.frankston.com





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