Software maker spends less than US$20M to create Solo2, a special processor to combine Internet browsing, TV and video recording.
Microsoft has designed a powerful new chip to run its WebTV interactive television service as the software giant races for a head start in the sector.
The new chip, called Solo2, is the latest in a string of special processors designed by the WebTV team to combine Internet browsing, interactive television and video recording on a regular TV set.
The main contribution of Solo2 is its ability to handle several streams of digital video at once, allowing users to watch or record several programs at the same time, Tim Bucher, vice president of WebTV's consumer products division, said in an interview Wednesday.
"It integrates in a single device not only Internet capability, not only interactive television capability, but very advanced digital TV capability," Bucher said.
Not a chip maker
The WebTV chips hold an unusual place in Microsoft's product lineup because while the company does make some hardware like keyboards or joysticks, it rarely dabbles in chip design.
"If we can't find solutions that are cost effective and that can't create the kind of user experiences that we want, then we build them," Bucher said.
The chip, which will be manufactured by Japan's Toshiba, will make its debut in WebTV's Ultimate TV platform that is expected to launch this fall, Bucher said.
Ultimate TV will compete against a similar offering by Internet services giant America Online called AOL TV that is to go on sale later this year.
Bucher said the chip had been in development for about 18 months, and it cost less than US$20 million to develop, though WebTV has spent a total of around US$100 million developing different hardware and capabilities for its products.
Microsoft bought WebTV in 1997 and has signed up more than 1 million subscribers to the service, which requires a special set-top box and a monthly service fee.
