The Problem: HP-Nintendo

While the threat to the HP MediaSmart television may not be apparent, there is significant overlap between the features offered by the television and the Nintendo Wii. The only features offered by the HP MediaSmart that are not available on the Nintendo Wii are the ability to do home networking and play back various audio and video formats. Also, since it is a television, the MediaSmart has a built in display and speakers. On the other hand, the Nintendo Wii has superior customization features and allows for gaming. It appears that there is significant overlap in their target markets.

Below is a comparison of the features offered by the HP MediaSmart television and the Nintendo Wii:

Digging a little deeper, Nintendo may have a couple of aces up its sleeve that will make it the more attractive option of the two. First, Nintendo has smartly enabled the Wii to receive software updates via the integrated internet. It will only be a matter of time before the developers roll out an update that will allow for audio (MP3, WAV, etc) and video (DivX, XviD, etc) support and another that will allow the user to hook in to their home network. Second, the Wii costs a fraction of what the MediaSmart does, at $250 compared to $1500. If Nintendo sees their market being eroded by the MediaSmart, they can tout the fact that people can pair the Wii with a traditional LCD television and still come in under $1500.

All in all, the HP MediaSmart may come under fire from an unsuspected source, the Nintendo Wii.