Intel Rings Digital Home's Doorbell

"We believe the PC is the most powerful computing device in the home," said Hal Speed, marketing architect with AMD. He said AMD intends to "be a good partner to other devices in the living room without unseeding the incumbents."

But such decisions -- and who ends up being a winner and a loser -- will be something that plays out over the coming years. For now, Intel has set its path by betting its Viiv brand can work the same magic in consumer electronics that Intel created in the notebook space with Centrino.

However, the consumer electronics market is markedly different from the PC market, and Intel's success in this sector isn't guaranteed. With Viiv-inside products expected in a matter of months, investors will soon find out if Intel's strategy is the right one.

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