Entertaining Focus For Tech Trade Show

TV shows on mobile phones, high-definition video discs, next-generation wireless laptops and a new wave of living room computers will be among the wares vying for attention this week at the Consumer Electronics Show in Las Vegas.

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The four-day CES, which starts Thursday, is the world's largest annual trade show for consumer technology. Companies often use it as a launching pad for new products.

Microsoft (NasdaqNM:MSFT - News) plans to tout its upcoming Windows Vista operating system, as well as its Xbox 360 video game console and software for mobile devices. Sony (NYSE:SNE - News) is expected to detail its rollout of the PlayStation 3 video game console.

Chipmaker Intel (NasdaqNM:INTC - News) will discuss its upcoming home entertainment PC platform called Viiv and next-generation notebook PC platform, Napa.

Supporters of two optical disc formats angling to succeed the DVD will use the show as a high-profile soapbox to shout their advantages. The next-generation optical disc battle pits Sony's Blu-ray Disc against Toshiba's HD DVD. Products using the competing formats are expected to be available early this year in what could be a repeat of the costly VHS vs. Betamax videocassette recorder standoff of the late 1970s and early 1980s.

The 2006 CES is expected to draw more than 130,000 industry professionals and about 2,500 exhibitors. It's not open to the public. Last year's show attracted 146,000 attendees and 2,576 exhibitors.

This year's CES features keynotes by Microsoft Chairman Bill Gates, Sony Chief Executive Howard Stringer, Intel CEO Paul Otellini, Yahoo (NasdaqNM:YHOO - News) CEO Terry Semel and Google (NasdaqNM:GOOG - News) co-founder Larry Page, who is president of products.

The struggle for control of the digital living room will be a big theme of the show, with consumer electronic vendors squaring off against PC companies, says Marge Costello, editor and publisher of Consumer Electronics Online News. The competition between consumer electronic and PC firms has been building in recent years.

"This is going to be a show where both sides really go at each other," Costello said.

The biggest clash will be between Microsoft and Sony, she says. The two have competing next-generation video game consoles, which they hope will be centerpieces in the digital living room. They also support opposing formats hoping to succeed the DVD.

Microsoft sees Sony's PS3 game console as an "enormous threat" because it can act as a media hub as well as play Blu-ray Disc movies, Costello says. The PS3 is expected to go on sale in the spring.

Microsoft's rival Xbox 360 debuted in November. Microsoft supports the HD DVD format, but its Xbox 360 can play today's standard-definition DVD discs.

The CES has expanded beyond hardware makers to include service and content providers, says Jeff Joseph, vice president of communications for the Consumer Electronics Association, the show's sponsor.

Show organizers expect a record number of attendees from Hollywood and other content fields, such as TV and music, he says.

The studios will be there to cut business deals and see the hardware that their content will be displayed on and distributed with, Joseph says.

MTV Networks, the music television powerhouse, plans to use the CES to announce its Urge music download service as well as a new HD television channel.

"The show has become the center of the digital universe," Joseph said.

The content industry is playing a major role in the Blu-ray Disc vs. HD DVD debate. It also is starting to embrace new forms of distribution -- from paid downloads for video iPods and PCs to Internet protocol television, or IPTV.

The convergence of consumer electronics, PCs, telecommunications and entertainment is finally happening, thanks to devices getting strong Internet connections, says Tim Bajarin, an analyst with research firm Creative Strategies.

"While these companies absolutely want to have the living room, the real prize is a direct link to the connected consumer," Bajarin said.

Mobile phones are a prime example of connected devices. They are becoming much more capable. For instance, Samsung ElectronicsSamsung Electronics and other vendors at the CES will be showing off cell phones with integrated hard drives for storing much more content, including music and photos, Bajarin says.