[quote name='javeryh']I don't know what to make of all this. Yeah, I'm excited to see some next-gen stuff but I'm a little wary that these new consoles are striving to be all-in-one media hubs... I mean, I have a DVR to record TV, a receiver for audio, a DVD player for movies, etc. The thought of cramming a PS3, Revolution and 360 into my entertainment center kind of makes me nuts.[/QUOTE]
The most important consideration is, does the additional capabilites add anything to the hardware cost of the console? For example, the Media Extender for the Xbox is just software. It doesn't require any functionality the Xbox doesn't already have for games. While you could rack up some costs if you put a lot of this stuff in firmware, having it on a hard drive, especially an optional hard drive, is pretty harmless. Everybody has seen what happened to machines that tried to do too much in a way that wasn't practical to the core functions of the game console, the latest being Sony's PSX. The smart way to go is to give consumers option but don't them buy something they don't want.
DVR is still a struggling category. Nobody has made any real money on it yet. Doing things like the Media Extender adds strength to both the DVR market and the console that supports it. nintendo has no direct involvement in that market but could score a lot of points by allowing a third party to create a product that works with TiVo's option for remote viewing stations. That way they'd get all of the benefits with none of the risk and consumer with no interest are completely unaffected. Not terrribly different from having Majesco publishing their GBA video series. Nintendo gets the royalties, a boost for their platform if it's successful and if it isn't, well, it was Majesco's fault.