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MP3 chipset is no revolution - Diamond

Diamond Multimedia has refuted claims that a new chipset incorporating an MP3 decoder will drive down the price of portable MP3 devices.
Written by Jane Wakefield, Contributor

The chipset has been developed by US chip company, ESS Technology to be used in a variety of electronic consumer devices. Putting the chip in set top boxes and CD systems, mini-disc players, etc could transform the way we listen to music according to industry experts. A set top box incorporating an MP3 decoder could form the basis of future entertainment systems allowing users to store and listen to downloaded tracks via their TVs.

Ken Wirt, vice president of corporate marketing at Diamond does not see the chipset as a great threat to the Rio. "It doesn't sound that revolutionary and will not in itself bring down the cost of the Rio. The main cost of MP3 is in the memory. The processor is the least expensive part".

ESS Technology claims the chipset will have mass market appeal and drive down prices of consumer electronics. No details of the products it could be used in, manufacturers or prices are yet available.

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