Gates Leads Ces Charge Into Pc Entertainment

Speculation is running rampant as to what will be announced by companies at this year's Consumer Electronics Show as the convention gets ready to open today in Las Vegas.

Microsoft chairman Bill Gates will give the opening keynote speech this evening, and many analysts predict that he will emphasize electronic devices, particularly those that promote the PC's role in entertainment.

Last year Gates announced the establishment of Microsoft's eHome division, in which wireless and other home networking plays a key role. He is expected to underscore the importance of Windows XP, Microsoft's newest operating system, and Pocket PC, its portable device operating system, to the company's plans for entertainment and communication.

Rearden Steel, the company started by WebTV founder Steve Perlman, is hotly tipped to be making an important announcement regarding home entertainment. Perlman sold WebTV to Microsoft for an estimated $500 million in 1997, but the crucial partnerships that insiders say he will announce for his new product involve other major players in the digital entertainment field.

XM Satellite Radio and Sirius Satellite Radio will bring their duel to Las Vegas, too. Both companies deliver hundreds of audio channels via satellite, requiring consumers to buy special car or home receivers and pay a monthly subscription fee. XM launched its service in November. Sirius is scheduled to launch its service Feb. 14, but insiders expect the company to announce newsworthy developments before the CES closes Friday.

Hewlett-Packard CEO Carly Fiorina will give a keynote speech Tuesday. Analysts expect her to concentrate on making technology easier to use, partially illustrating her theme by demonstrating new notebook computers with built-in wireless capabilities.

Dataplay will formally announce its partnerships with hardware manufacturers who will make portable digital audio players that use Dataplay's discs. Each disc holds 500 gigabytes but is not much larger than two stacked quarters.

The company also might define its plans for discs to be sold with protected content from EMI Recorded Music, Universal Music Group and BMG Entertainment.

Sonicblue recently announced its Rio Advanced Digital Audio Center and is expected to use the CES as an opportunity to make the home entertainment hub more widely known. It retails for $1,500 and allows consumers to play digital audio from its 40GB hard drive on wireless receivers anywhere in their homes.

The 2002 CES will cover 1.2 million net square feet of exhibit space at the Las Vegas Convention Center and various other venues, with about 2,000 exhibitors and more than 100,000 attendees confirmed.