As usual, tech insiders are about to descend on Las Vegas for the annual Consumer Electronics Show, but, judging from hotel availability, the economy is likely to take its toll on attendance. As of New Year's Eve -- just a week before the show - some brand-name hotels were selling for under $90 a night. Most years you'd be lucky to find a room during CES for under $300.
One conspicuous absentee from this year's show will be Microsoft co-founder Bill Gates, the perennial CES keynoter who quit his day job in June 2008.
Gates will be replaced by Steve Ballmer, who I consider to be a more energetic and charismatic speaker. But as good a CEO as Ballmer might be, he's no replacement for the arguably the most successful businessperson of our time. Ballmer is likely to talk about Windows 7.0, the replacement to the much-maligned Vista operating system, scheduled for release late this year.
The show, which officially takes place at the Las Vegas Convention Center and the Sands Expo Center, also spills out to hotel suites throughout the city where companies hold private briefings with press, analysts, major customers and partners. Suites are often used simply because they're cheaper than buying a booth on the show floor, but they can also afford a bit more privacy for secret briefings on as-yet-undisclosed products.
Speaking of disclosure, most companies do not pre-announce the products they'll showcase at CES. But some do, and there are always plenty of leaks and rumors -- and just plain trends -- that provide a pretty good overview of what we can expect to see at the show and, later in the year, on store shelves.
One trend that will be omnipresent at CES is the convergence of networking, media and Internet connectivity in home entertainment systems. For several years running, CES has seen products that promise to distribute music and video signals to screens throughout the house as well as plenty of schemes to bring the Internet to your living room TV.
At the last several shows, Microsoft, Intel and a host of PC makers demonstrated media PCs designed more for TV, recorded video and music than for productivity but, despite lots of hype and some interesting products, the idea of installing a PC in a home entertainment cabinet has not caught on.
This year Yahoo and Intel are expected to take a different approach by showing prototypes of Net-enabled TVs with Yahoo-supplied "widgets" that will stream video from YouTube, Hulu and other sites or display photos from Flickr. The sets might also enable TV watchers to use the TV's Internet connection to discuss programs with friends or find get the bio of an actor they see in a show.
While these sets will probably be able to connect to home PCs, they will not require PCs nor be PC-centric. The idea is to make accessing Internet content as easy as watching soap operas. There are already plenty of net-connected set-top devices including Apple TV, the Netflix Player from Roku and Internet-ready gaming devices like the Xbox 360 and PS/3 that can also stream media, but now we're talking about connectivity being built-into the TV set itself. The key to making this work is for it to be easy and reliable. People don't want their TVs to be as complicated or buggy as PCs.
Those willing to spend big bucks will be able to watch those TV and Internet programs on even thinner HD-TVs. LG, for example, is expected to show off an LED backlit TV that's less than 1-inch thick. While that will certainly win the Korean company plenty of "wows," I doubt that many consumers will want to pay more for such a set. Thin is terrific if you're hanging the TV on the wall, but pretty irrelevant if, like most people, you put the TV on a stand or in a cabinet.
Last year, Sony showed off an 11-inch OLED (organic light-emitting diode). OLEDs don't require a backlight and are far more energy efficient than other displays. This year, Sony is likely to introduce a larger (perhaps 30 inch) OLED and Samsung may also show an OLED screen. But with Sony's 11-inch XEL-1 selling for of $2,500, don't expect that 30-inch model to be affordable by mere mortals.