Information Week takes a detailed look at Apple in Apple's Next Big Thing: Home Entertainment. Now that video has been conquered on the iPod, the next challenge is the takeover of the living room. Apple is well positioned to build on its brand, ease of use, software interface, and content sources.

The downside - this is a new market. It will take a few years to build the marketplace. Engineering is a challenge as well. Home media system will need to be plug and play and as reliable as existing equipment like TVs and VCRs. Installation and set up need to be greatly simplified. The company will face tough competitors from multiple sides, such as Microsoft, HP, Intel, Sony, and Motorola.