Other Devices Soon to Overtake Gaming Consoles in Networked Entertainment Markets

As the market for online distribution of content continues to expand, other device categories such as DVD players, set-top boxes and TVs will begin to rival the gaming market's dominance in the world of networked entertainment appliances.

Other Devices Soon to Overtake Gaming Consoles in Networked Entertainment

Markets

Oyster Bay, NY - August 15, 2006 - The market for networked entertainment
devices is currently dominated by gaming consoles. ABI Research estimates
that in 2006, 44 million consoles and portable gaming handhelds will ship
with network connections. But Mike Wolf, principal analyst at ABI Research
says that 'As the market for online distribution of content continues to
expand, other device categories such as DVD players, set -top boxes and TVs
will begin to rival the gaming market's dominance in the world of networked
entertainment appliances.'

Today, many millions of handhelds from Nintendo and Sony ship with wireless
networking connections, and the new generation of consoles from the
big -three vendors all feature options for consumers to connect to online
gaming services.

But over the next few years that dominance will start to change, and one of
the fastest growing segments will be set -top boxes, as service providers
look to add multi -room video services to their repertoire of offerings. In
addition to expanding the reach of premium pay video to other set -top boxes,
service providers are also beginning to push their hardware partners to
integrate Wi -Fi and other connectivity types, allowing the delivery of
Internet based content to consumer electronics devices both in and outside
the home.

'The inclusion of Wi -Fi in portable devices and set -top boxes creates an
ecosystem for delivery of content beyond today's closed systems.' said Wolf.
'This push by premium video providers will open up new service and content
models to compete with the PC as a channel for delivery of video content.'

Other device groups such as DVD players/recorders and networked home theater
systems are also expected to grow. Initiatives such as Microsoft's Media
Extender Partner Program and the new Internet TV consortium with Sony and
others, will drive embedded networking connectivity in mainstream consumer
electronics devices.

'The fastest growing category for networking silicon providers is
entertainment,' said Wolf. 'Every provider of solutions for high -bandwidth
communications technology is busy developing focused solutions tailored to
the needs of the consumer electronics vendor. The problems of the past, such
as low speeds and lack of standards for software layers, have been resolved,
opening the door on an enormous opportunity.'

ABI Research's study, 'Home
nected_Home_Market_Overview> Networking and Connected Home Market Overview',
examines all segments of the home networking and networked entertainment
market. It forms part of two ABI Research Services, Wi -Fi and Home Networking.

Founded in 1990 and headquartered in New York, ABI Research maintains global
operations supporting annual research programs, intelligence services and
market reports in broadband and multimedia, RFID and M2M, wireless
connectivity, mobile wireless, transportation and emerging technologies. For
information visit www.abiresearch.com, or call +1.516.624.2500.

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