Apple's Head Start

Meanwhile, Intel (INTC Quote) launched its digital living room platform, Viiv, at the Consumer Electronics Show earlier this month. The company expects to have a number of manufacturers debut machines based on the platform this year.

Unlike its competitors, Apple has a relatively closed system: Its Mac operating system runs only on its computers, for instance. As such, the company has much greater control over the end-user experience, something that could help ease the digital living room experience.

"If you look at the Media Center PC, it hasn't set the world on fire," notes Stephen Baker, an analyst with NPD Group, a market analysis firm.

Of course, not everyone's convinced that Apple is the right company to lead the way to the digital living room. Part of that skepticism has to do with pragmatic concerns. Although Apple has forged ties with some content companies, the company has no links to cable or satellite television companies. Some analysts think such companies, whose set-top boxes -- essentially limited function computers -- already reside in the lion's share of U.S. homes, have the best shot at popularizing the digital living room.

Other skepticism is more philosophical. Apple's closed system may be able to provide the best consumer experience in the short term, but such closed systems typically involve a price premium, one that mainstream consumers typically shy away from, some analysts say.

"In the long run, we prefer open systems," says Jonathan Gaw, an analyst with market research firm IDC.