Sony unveils PC-entertainment system

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By Stacy Cowley

New York (IDG) -- Sony Electronics hopes to shake off the down market and lure technophiles to a new all-in-one PC and multimedia entertainment system.

The Sony VAIO (Video Audio Integrated Operation) MX combines an assortment of media gadgets -- including a TV, radio, video recorder, MiniDisc, and CD and DVD players and recorders -- with a full-featured, Pentium 4-powered desktop PC.

But consolidation doesn't come cheaply: The VAIO MX is priced at $2,800 without a monitor. Users can attach either a monitor or a TV as a display.

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Sony's target audience for the VAIO MX is 25-to-35-year-olds who are "tech-oriented and on the cutting edge," says Mark Viken, senior vice president of Sony Electronics' Information Technology Products Division. He says he's confident that demand for the VAIO MX will be strong despite the current slump in the economy. "Sony's high-end digital products are doing very well right now," he says.

Viken cites a PC/DVD/TV combination launched in June -- the PCV-RX490TV VAIO Digital Studio PC with Giga Pocket Personal Video Recorder -- as a bellwether for demand in a product such as the VAIO MX. Priced at about $2,600, the PCV-RX490TV has exceeded Sony's sales projections, Viken says. He declines to disclose specific sales figures.

"If you look at the desktop PC industry, (the VAIO MX's cost) is a very high price point," Viken says. "But it's well beyond what a PC is. That's always been the strategy of the VAIO line -- integrated capabilities. We think we're creating a new category of device."

One analyst present at the VAIO MX announcement last week, though, expressed doubts about Viken's rosy demand projections.

"They're going to sell about five of them," said Jupiter Media Metrix analyst Joe Laszlo. "I'm all for integration, and I think customers are, too, but this is way too expensive for the market right now. It's ideal for college students, but they're exactly the ones who can't afford this."

Another analyst expressed more optimism and said Sony may cut into Apple Computer's base of customers seeking PCs with advanced video editing and multimedia features.

"It's an amazing thing for the price," said Envisioneering Group Director Richard Doherty. He said the VAIO MX could appeal to advertising agencies and other corporate users requiring robust multimedia systems for presentations, and to home office workers who can take advantage of the device's entertainment features while writing it off on their taxes as a business PC.

Sony suffered a setback several months ago with another attempt at a "beyond-the-PC" device. The $499 EVilla Internet appliance offered users e-mail, news and multimedia content, but died less than two months after its launch. Sony representatives blame the EVilla's demise on its failure to meet Sony's expectations for usability and stability.

The EVilla debacle won't affect the VAIO MX launch, Viken maintains, noting that the EVilla came from a different product group and targeted a different user base than does the VAIO MX.

The VAIO MX is to be available starting October 27 though Sony's Web site and a number of national electronics retailers, including Best Buy, Circuit City and CompUSA. The machine comes with 512MB of RAM, an 80GB hard drive and an 1.7-GHz Intel Pentium 4 processor.

The VAIO MX's operating system is Microsoft's Windows XP Home edition. Software bundled with the device includes Adobe Photoshop Elements, Corel WordPerfect, Quicken 2002 and an assortment of Sony tools for video and still image editing.