Newell's 'best' scenario is essentially a traditional PC purchased just for living room use. "PCs have always scaled really well - if a customer wants more 3D performance they can get it. If they want more storage for video the can get it. So the sky is the limit - if you want a $4000 living room box I'm sure there are lots of PC vendors who are going to send that to you," he said.

"If we solve the other problems in terms of making it a great user experience there's certainly going to be a lot of hardware out there to satisfy any consumer's high-end desires."