"This is the first true Internet appliance that will come into the consumer space, " said Dataquest analyst Van Baker.

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Van Baker, consumer electronics analyst for research firm Gartner Inc.

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"Cisco wants people in the entertainment and computing industry to understand that they are the way to get something from point A to point B over the Internet, " said Dataquest's Van Baker.

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"What Intel hopes it will do is attract consumers and commercial buyers back to a more expensive PC, so they can sell their higher-end processors, " says industry analyst Van Baker of Dataquest.

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"They've got an attractive device and a good operating system, but ultimately for them to succeed they've got to get some excitement and buzz in the consumer segment again and it's an open question whether they can do that, " says Gartner analyst Van Baker.

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