The current generation systems are in a mid-life crisis. Console prices have dropped to under $200, games can be found for under $20, and top software titles are being bundled for free. In just a few short years Sony, Microsoft, and Nintendo will reveal their next-generation hardware, each with a unique definition of home console entertainment. The PS2, Xbox, and GC were all built with different concepts on what the consumer would want in a home console unit. Sony went with an entertainment center, Microsoft brought PC-functionality to the living room, and Nintendo stuck with a games-only unit. The functions and capabilities of each unit structures what types of games consumers can play and what specific entertainment needs can be met. GA takes a look at the strategies and budding technologies that could shape the next great console.

The home entertainment hub

The Playstation 2 and Xbox set out to be much more than a videogame system. Sony and Microsoft's aim to conquer the living room required much more technology than any previous console released. Sony added USB and an iLink port to the PS2, while Microsoft placed a hard drive and built-in Ethernet into Xbox. But the most important technological factor that drove both systems into living rooms is DVD playback. The integration of DVD technology into videogame consoles successfully merged two fast expanding markets and quenched a thirst for consumers who wanted more entertainment possibilities in one unit. It's unquestionable that DVD will continue to be used in the next home consoles, but what is in question is how hardware makers will expand on the home entertainment concept. Here are a few possibilities:

The next standard in DVD is set to be a large capacity optical disc recording format known as the Blue-ray disc. The basic specifications were announced earlier this year with backing from nine companies, including Sony and Matsushita (Panasonic). The disc will enable recording, rewriting, and play back of up to 27 gigabytes of data on a single sided disc. The result would be a giant leap of space for developers to fill content on, and a way for consumers to store large amounts of data on a single disc. Hooked up with a satellite or cable signal, the blue-ray disc would become a de facto Digital Video Recorder to capture your favorite TV shows and movies on a removable format.

While the possibilities of Blue-ray in the next-consoles isn't inconceivable, it will be pricey. Sony's first consumer Blue-ray DVD recorder will debut next month in Japan at a whopping $3,800. Considering Sony, Microsoft, and Nintendo have rough plans to launch new consoles in two to three years, the price of the technology may not justify its integration in a mass market unit.

Tivo, Replay TV, and Ultimate TV are a few key brands associated with Digital Video Recorders or DVRs. Essentially a VCR replacement, DVRs record TV programs digitally onto hard drive. The stand-alone units make recording your favorite programs a cinch with one touch recording, season passes, and the ability to fast-forward through commercials on recorded programming. Digital Video Recording technology has a high chance of making it into at least one next-generation console. Microsoft reshuffled jobs from its Ultimate TV group into its Xbox division in early 2002, suggesting a possibility of DVR technology in the next Xbox console. DVR will further solidify a videogame console into the home entertainment sector by acting as a VCR, a staple in home entertainment setups today.

The chipset powerhouse

Underneath the hood of every console is the latest, customized hardware. The next round of consoles will be no different, as Sony, Microsoft and Nintendo find the best combination of graphics strength and affordability. While the most powerful chipset doesn't necessarily account for the best games, it won't stop each hardware maker from trying to one-up the competition.

Sony is suspected to use a customized CPU known as the "cell" in Playstation 3. A joint effort between IBM, Toshiba, and Sony, cell is touted as a supercomputer on a chip that will contain multiple processing cores to perform multiple tasks, from processing graphics to high bandwidth communications. Technologically the chip won't be a slouch. Cell is said to have the ability to perform 1 trillion mathematical calculations per second, roughly 100 times more than a single Pentium 4 chip running at 2.5GHz. While the PS2s Emotion Engine concentrated on high graphical performance, Sony is clear to position cell to be capable in many more computing aspects outside of gaming, particularly peer-to-peer networking and entertainment content. The high number of chip calculations could have no problem performing high graphical output, but the complex nature of the customized chip could result in the same development problems found early in the PS2s development cycle.

PC graphics card makers will have a strong foothold in next generation consoles from Microsoft and Nintendo. Nvidia provided an iteration of the GeForce3 in the Xbox. Though the chipset derived from PC graphics card technology, it's hard to deny that the GeForce3 provides anything but console-like visuals and high performance. The power in Nintendo and Microsoft's next consoles may not lie in its CPU, but in its graphics chipset. ATI is set to work with Nintendo on its next generation hardware. The company has been on a recent high with its Radeon 9700 Pro claiming a performance lead against Nvidia in the PC graphics card market. With ATI's Radeon 9800 Pro besting Nvidia's latest GeForceFX 5800 Ultra, Nintendo could have a mighty graphics chipset in its next console. Not to be outdone, Nvidia, who currently owns more marketshare over ATI, may collaborate with Microsoft for a second outing. Both ATI and Nvidia could presumably use custom iterations of their latest graphics card lines, which would be more than capable of handling complex calculations at a low cost to both hardware makers. While the chipsets might not have the maximum calculation power of Sony's cell chip, the PC-derived chips would be far easier for developers to get to gripes with at start.

Look ma, no wires

With broadband a success in both the PS2 and Xbox, the next technological step would be to cut the high-speed wire and head to a built-in wireless solution. Wireless technology is fast becoming a quick and affordable way to network and communicate with other technological devices, thanks in particular to one wireless standard.

Bluetooth is the wireless standard found in many computing products today. From mobile phones to PCs, the technology can be integrated to any device to connect to a range of products. For home consoles in particular, Bluetooth could allow instant wireless connection to the internet or create a LAN between other consoles in the home.

The most recent use of Bluetooth in gaming can be found in Nokia's N-Gage, where multiple players can link up without wires. With major third party publishers committed to developing cell phone content, there's a good chance Bluetooth will add connectivity between cell phones and consoles. The technology will likely make its way into the next Game Boy to link up with other GBs and Nintendo's next console.

On a grand scale, Bluetooth, or the popular 802.11b wireless standard, would be a crucial link for Sony and Microsoft to create a virtual home entertainment network. Movies, music, and other entertainment downloaded through a PC could be shared with any home console in the house and vice versa. Sony's vision for an e-distribution system with the Playstation 2 didn't pan out this generation. But armed with increased broadband use and a wireless home network, the next Playstation could live up to the PS2's original intent.

The technology that couldn't

Building new technology into consoles doesn't necessarily mean that it will be put to good use. USB, PCMCIA, and iLink (FireWire) computer technology were built into the PS2, only to be used for niche peripherals. The power of an expensive, customized chip like the Emotion Engine CPU (PS2) has not demonstrated a performance leap against a Pentium III (Xbox) or a Power PC (GameCube) linked with a graphics card. New technology can be costly, and whether or not it's used, hardware makers and subsequently consumers, still have to pay for it. Technology that has an apparent use in other mediums might not be the most useful in a home console. The next great console should house a mix of functionality and affordability. The right combination of technology will be key in determining its entertainment value in the future.

What technologies do you want to see in the next console? How will each be an advantage of disadvantage to consumers? We want to know what you think. Send your thoughts to feedback@gaming-age.com and discuss the topic at the world famous GA Forums, here.