Bucking the gloom in the high-tech sector, over 100,000 gadget enthusiasts and professionals are converging on Las Vegas for the annual Consumer Electronics Show where manufacturers are finally starting to deliver on their promise of digital convergence.
Over 2,000 companies -- the most ever -- will be exhibiting at the sprawling Las Vegas Convention Center which hosts the show starting on Thursday. Unlike the rival Comdex, which focuses on personal computer technology and has been in decline for several years, the CES appears to be gaining strength on the back of a consumer electronics market that has weathered the downturn by providing constant innovation at the same time as prices have dropped.
The divergence of fortunes marks what is perhaps the most powerful trend in modern technology: the shrinking of PC's and other electronic circuits to allow their integration into myriad everyday gadgets.
Industry visionaries have for years been predicting this era of digital convergence in which consumers can leverage advances in TV's, phones, mobile computing, networking and the Internet into dramatic changes in the way they do business and have fun.
Among the most hyped products at this year's show is a new Walkman-sized portable video player, being developed by Sony, Intel and SonicBlue, the maker of the personal video recorders. The Personal Video Player, or PVP, which is in advanced stages of development, includes a 10 centimetre screen and storage for more than 10 hours of movies.
For viewers who want to watch something a little larger companies like ViewSonic and Phillips are to debut "smart displays" that transmit signals from a base station to a wireless touch screen anywhere in the house.
Another tiny device that packs a powerful punch will be unveiled by upstart chip company Transmeta, which is unveiling a full featured PC that runs Windows XP and fits in the palm of your hand.
Several companies are unveiling home gateway media devices that act as players of MP3's, movies, television and other digital media.
One of the most impressive comers from the little known Hy-Tek Manufacturing which has developed a 76cm flat panel LCD display that also includes such high-tech components as a 2GHz, Pentium IV processor, 120GB hard drive and Windows XP. The US$6,500 device also has a 125 channel TV tuner, a digital VCR player, both a DVD and CD-RW drive, and a Bose sound system.
Other firms will be unveiling car-mounted systems that can receive satellite TV signals.
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