More and more people every year are using media boxes. Manufacturers have started to take note of this, and now an increasing number of products are being launched that have media box functionality. The Zune HD is a perfect example. It's a media player, but with HDMI out and its own TV interface, it also makes a solid choice for a media box. According to Gizmodo, Toshiba is getting in on the game as well; their JournE Touch media tablet is built for use in the living room.
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The JournE is a 7" tablet that runs on Windows CE. It has an ARM processor inside, and it can run a full web browser and access things like Picasa, YouTube, Flickr, and IM clients. It comes with WiFi enabled and its (separately sold) base station has USB and HDMI outlets. At $350, this machine isn't too terribly expensive. With the base station, you could hook it up to your TV and use it as a cheap, tiny media box and browsing device.
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Of course, if you already have a full-fledged computer acting as a media box, this would be a substantial downgrade. A product like this would only really be worthwhile if space is a concern or you don't want to purchase and set-up a full sized computer. While the JournE has some nice features, I'm a bit underwhelmed by the whole package. Toshiba is definitely on to something here, but they haven't quite gotten it right.