Game Wars 2: Battle for the Living Room

Sony and Microsoft are preparing for the next round of the game wars: Who will control the home entertainment computer of the future?

The prospect of digital convergence has prodded Sony and Microsoft to weigh how many interactive media and DVR features they can add to their next-generation players without making them too complex or pushing prices beyond the relatively low cost that most users expect.

But should they fail to push their products in a multimedia direction, some analysts say, it will open the door for Intel, which is attempting to reshape the PC into a entertainment-oriented multimedia computer that will fit more comfortably into the family room.