Gateway debuts $1,999 PC-TV

Gateway said it is now offering a system that combines a PC and 27-inch television monitor for just under $2,000 in an effort to remove barriers inhibiting the growth of the market for PC-TV convergence devices.

Continuing its lone push into the market for PC-TV products, Gateway has been working to address criticism of the products as being too costly for the average consumer.

As recently as a year ago, systems like the one Gateway is offering went for $4,000-$5,000 dollars. Compaq abandoned the market for PC-TVs early this year since sales of its $5,000 systems were anemic. The company pulled back from marketing its PC Theater product in retail stores in January of 1998, presaging its eventual demise. (See related story).

But the new Gateway system offers a large-screen TV plus all the bells and whistles of a powerful consumer computer for $2,000. The included DVD drive also offers a true convergence feature since DVD players are being marketed as both consumer and computing devices.

The new system will includes an improved, faster version of the Celeron processor operating at 333-MHz. It also includes a 2GB hard disk drive and a 27-inch monitor to limbo in under the $2,000 mark for the first time on a new configuration. (Click here for detailed specifications.)

Gateway Destination

High prices have been a major factor limiting the consumer appetite for devices that combine TV viewing with the ability to play computer games, surf the internet, watch DVD videos, and view electronic programming guides.

Gateway, however, has found a degree of success for the product with sales to corporations and universities desiring large screen presentation systems.

But Gateway is not abandoning the high-end of the market either. It also announced a new Destination system with a 450-MHz Pentium II, an extra-large 36-inch monitor, and a surround sound speaker system for $4,999.