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CNN Today

Intel, Microsoft Introducing New Products at Consumer Electronics Show

Aired January 8, 2001 - 4:48 p.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

JOIE CHEN, CNN ANCHOR: Viva Las Vegas, especially if you love new gadgets. The Consumer Electronics Show is under way now in the Nevada desert, and CNN's Mary Kathleen Flynn is there to check out all those new toys.

MK, what have you got there in your hand? Something hot?

MARY KATHLEEN FLYNN, CNN CORRESPONDENT: Oh, I do indeed. This is from Intel, and part of that a little bit of a surprise. Intel, of course, is well-known for making computer chips, and now they're getting into the consumer electronics device business.

This is an MP3 player, a portable MP3 player with headphones. Now, of course, there are a lot of portable MP3 players out there on the market, but there are a couple of things different and I think pretty exciting about what Intel is doing.

First of all, the software is really easy to use, and second of all, you can not only play this while you're out there jogging or on the treadmill at the gym, but you can also take it home and put it into your home stereo system. The other MP3 players out there don't have the power to really be able to hear it at home in the home stereo system. This one does.

I heard it yesterday. I thought it sounded pretty good.

Now, another product idea -- not an actual product -- the MP3 player is actually out in February for just under $300. This is another product from Intel along the same idea of this line of consumer electronics devices. However, it's a concept they call it. And what it would be is a touch pad. This one, of course, is just a prototype; it's not even on.

But what you'd be able to do is walk around your house and be on the Internet, and you would be surfing with your fingers using the touch pad. And you could walk around from room to room and be online, say, maybe on CNN.com perhaps. And you'd just have to be about 150 feet away from the computer. So, that's a look at what Intel's up to in its new foray into consumer electronics products.

CHEN: MK, that second one you're talking about, the one you have in your hands, is that did you say a prototype or it's actually for sale? FLYNN: This is a real product concept. That's not a real product yet. That means that Intel is still thinking about whether or not they want to turn it into an actual project. We'll have to see.

CHEN: All right. Now, we understand Microsoft is also getting out a little bit away from its traditional line and coming up with an alternative to the PlayStation.

FLYNN: Exactly. Now, Microsoft has been talking about this secret X-Box for about a year, but now for the first time we could actually see it and we could actually -- I even was able to hold one in my hands.

Now, what's supposed to be exciting and new about it is that it will have three times the graphics performance of the PlayStation 2. That's according to Microsoft. Let's wait and see if they're actually able to do it. So far, however, it does look pretty good, and the game developers that I've spoken to are, in fact, excited about it.

They think that with all that more graphics power what they can do is make games that are even more compelling.

CHEN: Is much of the attention this year really on that games entertainment sort of thing, the MP3 player, this alternative to the PlayStation? Is there -- is there other electronic gadgetry in our future that we need to be thinking about?

FLYNN: Well, one thing that's interesting that's happening today is satellite radio. A company called XM is actually launching a satellite. And what that allows you to do is to, say, take a trip across the country listening to the car radio and not have to worry about finding different stations along the way or losing stations as you go.

Now, it is a little expensive. You have to spend about $300 for a receiver and $10 a month for the service, but a lot of people here are excited about satellite radio from XM. There's also another company doing it, too, called Sirius.

CHEN: All right. Well, it looks like you've got a pretty good gig this weekend, Kathleen Flynn out in Las Vegas, the consumer electronics show out there.

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