"The intent was, originally, and still is to create a product that is usable by a group of people. So it's almost like a group PC. "

DVD and surround sound made it more compelling says Gateway's Bill Graber. And now they've announced a new addition that will bring digital satellite TV from EchoStar into the system. EchoStar is also teaming up with Microsoft owned WebTV to create a box that will combine the two services. WebTV founder Steve Perlman...

"What it really is is an integration of an advanced EchoStar Dish Network satellite receiver in a digital WebTV Plus. And what we've added to the software is a gigantic 8.6 gigabyte ultra-fast hard disk."

The 500 dollar system can digitally record programs or even let you pause a broadcast in progress and resume it later. Entertainment is even becoming an important option on portable computers. IBM has added a new I series model with a DVD drive. IBM's Adalio Sanchez

"The demand for DVD is on a trajectory that's far faster than the demand for CD was in its infancy."

The price...just under three thousand dollars.