By internalizing their Internet services instead of outsourcing them, it could be a good thing for Gateway. It's not critical, though. They're doing well with their hardware, their personal computer sales, so it's not as important overall.

Microsoft is not going to establish a chokehold on the information appliances industry. These appliances don't need a standardized operating system the way PCs do. In many cases, the consumer will have no idea what the operating system is, since it's meant to be completely hidden.

There's certainly an advantage to having an instant installed base for people trying to decide what format.

It's really subjective. For the foreseeable future, we're going to have multiple formats.

There's the question of how you are going to sell this when you've got sub-$500 PCs on the market. But this is going to be something that appeals to people who already have a PC, I think. They'll see this as complementary.

It has some advantages a desktop system doesn't. The price is low enough to appeal to others besides rich aficionados.