dogman-x :
I think people want to play games on a really big screen. If a PCs had really big screens, people would play more PC games.
I also think people would like to see their digital camera pictures on a really big screen. Same thing with Netflix Instant Videos online.
We need a good living room PC solution. In my mind, this means:
1) HDMI / HDCP video connections
2) S/PDIF audio connections with Dolby Digital Live encoding hardware
3) a 17" wide case that easily stacks with your receiver or DVD player
4) heat and noise that are not noticeable
5) a price that's only $200 more than a gaming console
6) graphics and video quality that's noticeably better than a gaming console
7) takes about the same amount of time as a gaming console to boot
If someone made a PC like that, then PC games sales might be resurrected.
Like the majority of console gamers, you sir, are uninformed. What makes you think you can't hook a PC up to a big screen any easier than a console can be hooked up? Many HDTVs have vga inputs and some video cards even have HDMI outs. All video cards have a DVI out which you can use a DVI to HDMI cable (buy it for six bucks online) to output crystal clear graphics to an HDTV. Too many people seem to associate console games with HDTV's as if they were package deals. Sorry, but if you want to include an HDTV, you gotta spend an extra thousand bucks in addition to the 300-400 dollar console. All an HDTV is, is an oversized LCD monitor that generally doesn't support as high of resolutions. So yea.. This argument doesn't hold since you can use a TV for PC gaming.
I'd also like to address your points.
1) I already have one of these. A decent HTPC costs less than the PS3 when it first came out. Yes, it supports HDCP and I have an HDMI to DVI cable hooking it up to an HDTV.
2) There are a TON of motherboards with optical/coax spdif output built in. Get on of these and stick it in your htpc.
3) There are a TON of cases that fit this criteria. You can either buy a pre-built one or build your own. I use an Antec Fusion and it blends in perfectly with the entertainment center. I always get comments like "That's a computer?" because most just think its part of the entertainment center.
4) My HTPC is dead silent. This depends a lot on the components you get. If you get a good case, a good PSU, and an aftermarket cooler then a silent setup is easy to obtain.
5) Here's a quick PC build.
$150 - HTPC Case (the Antec fusion includes a psu that is sufficient for this rig)
$100 - CPU
$160 - ATI 3850
$60 - mATX mobo with spdif
$60 - 250 gig HD
$30 - 2 gigs of ram
$30 - DVD Burner
$20 - Keyboard & mouse
$610 - Total With an exception of the Wii, I'd say this fits within the 200 dollar range of consoles. I could have put in cheaper components, but I was going for something that could exceed the performance of a console, which this does. This setup includes a faster CPU, a superior video card, larger HD, DVD burner, and a machine that does far more than any console.
Its hard for me to include an OS cost in this setup as I have three copies of XP pro, 1 copy of Vista ultimate, and 1 copy of Vista enterprise lying around. I never paid more than 20 dollars for any of these (most were free) either through 80 percent discounts from friends working at MS, MSDNAA, or the customer feedback program through Microsoft where they gave me a free copy of vista ultimate. A lot of people have retail copies lying around from old machines that have been discarded as well.
6) Even with a mediocre system like the one I put together, its still gonna have superior graphics to a console. If you wanted to spend a few hundred dollars more, you could put together quite a nice system that would kick the trash out of any console.
7) Not much you can do about startup time. Keep in mind this is still only about 30 seconds. But also remember that startup is a one time thing for PCs. Once its up you can leave it running for days if you'd like. If you are worried about power then let the thing go in standby which it only takes 5-10 seconds to come out of. I wouldn't consider startup to be a significant drawback of PCs as its not much time we are talking about.
In summary, all of your criteria are already met for PCs. What it comes down to is the world is filled with noob console gamers who think its difficult to insert a cd into the drive and make a few mouse clicks to install a game. Consoles are doing well because with each generation, kids are getting dumber. Kids are also extremely lazy these days.
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Shez: You are wrong. If they increased the security measures on PC games, they would kill off PC gaming entirely. The majority of the PC games I buy are ones that I've downloaded and played first. Once I decide I like the title, I go out and buy it. Sometimes even a few months later. I would guess that Crysis and CoD4 will see a pickup of sales throughout 2008 as people upgrade their PCs and people who have downloaded and played the games decide they are worth it to buy. I can honestly say that I would have never bought titles like CoD4 if I hadn't downloaded and played it first. It wasn't til I played it that I realize its worth and went out and bought it.