Earlier Tuesday at the D: Dive Into Media conference organized by the All Things D Web site, an affiliate of the Wall Street Journal, Erik Huggers confirmed rumors about Intel's plans for television and said that the company has set up a new group called Intel Media. Huggers is corporate vice president of the group.
Creating a media group is a step in the right direction, but Intel has the painstaking job of creating a reputation as a consumer electronics company, Brookwood said.
The TV box could also provide a new market for Intel's x86 chips, which have been hurt with the slowdown in PC shipments. Intel's move into the consumer electronics mirrors a similar move earlier this year by Nvidia, which announced the Project Shield mobile gaming console. It ships later this year.
With the chip industry struggling, the consumer electronics market is where the money is, Brookwood said.
For Nvidia the jump from selling a video card to a gaming console is less complex as both are consumer products, Brookwood said. Intel could face more challenges in its jump from being a chip supplier for set-top boxes to selling its own brand of TV boxes, he said.