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Edition: U.S. Article Comments (0) Video Email Print Reprints Read Toxic Hungarian sludge spill reaches River Danube | 2:51pm EDT Job losses in 2009 likely bigger than thought 4:21am EDT Hungary spill leaves locals hopeless, anger mounts 11:54am EDT Oil ends down, profit-taking before U.S. payrolls 3:52pm EDT Obama kills foreclosure bill as fury mounts 4:26pm EDT Discussed 87 Super-rich investors buying gold by the ton 70 Racial predatory loans fueled U.S. housing crisis: study 63 U.S. apologizes for syphilis experiment in Guatemala Watched Red faces over top model gaffe Tue, Sep 28 2010 Cleanup after Hungary toxic spill Wed, Oct 6 2010 Fatal floods hit Vietnam Wed, Oct 6 2010 Report Title Price ValuEngine Industry Report for RETAILING - GOODS Provider: ValuEngine, Inc. $49.0 Buy Trading Report for (BBY). A detailed report, including free correlated market analysis, and updates. Provider: Stock Traders Daily $18.0 Buy BBY: Risk/Reward Rating: Full Report: Cash Truth Behind the Reported Earnings Provider: New Constructs, LLC $10.0 Buy BEST BUY CO- INC (BBY=US) - REPORT FOR ACTIVE TRADERS Provider: Pechala's Reports $25.0 Buy NYSE and AMEX quotes delayed by at least 20 minutes. NASDAQ delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here. Special Report The Pentagon's cyber warriors Cyber warfare has the potential to cause massive disruption. But not everyone agrees that the Pentagon is right for the job of protecting the country from virtual attacks -- some even say it's risky. Reuters takes an inside look at the U.S. military's preparation for digital combat. Full Article Cyber Command slips behind schedule Extremist websites booming, but hard to police Cisco unveils $599 home videoconference system Tweet This Share on LinkedIn Share on Facebook Related News UPDATE 2-Logitech unveils first gadget for Google TV Wed, Oct 6 2010 Verizon says part of Cisco home TelePresence launch Tue, Oct 5 2010 PRESS DIGEST - New York Times business news - Oct 5 Tue, Oct 5 2010 Skype names senior Cisco exec Bates as CEO Mon, Oct 4 2010 UPDATE 2-Skype names senior Cisco exec Bates as CEO Mon, Oct 4 2010 Analysis & Opinion Nick Denton’s next move Related Topics Technology » Media » Stocks Related Video Cisco goes after Skype Wed, Oct 6 2010 By Gabriel Madway SAN FRANCISCO | Thu Oct 7, 2010 12:00pm EDT SAN FRANCISCO (Reuters) - Cisco Systems Inc launched a $599 home videoconference system, a high-quality rival to Skype and other low-cost providers, as the network equipment maker seeks to expand in the consumer market. The high price, and a $24.99 monthly fee, may make it tough for Cisco to win much of a following among consumers, many of whom are using free, online video chat services, analysts said. But they also said the move shows the company is set on keeping up double-digit revenue growth even as its traditional routing equipment business matures, by expanding its target from business clients to consumers. "I think the difficulty is probably the monthly price. $300 a year forever, that's a lot of money," said Gartner analyst Ken Dulaney. "But this is a premium product. And I think it will set the imagination off with a lot of people." The home TelePresence system, called "umi," features a camera and console that connects to a standard high-definition TV and works over high-speed Internet. Its biggest selling point is high quality, real-time video without the pixelations and interruptions of low- or no-cost online services. It also allows unlimited calls, video messaging and video storage. The product will be available next month, and can be pre-ordered on Cisco's website. Best Buy will sell it starting next month, and Verizon Communications Inc will sell it starting next year, Cisco said. BOARDROOM TO LIVING ROOM Cisco already sells a high-end videoconference system for businesses. These systems, often built to simulate boardroom-like settings, can cost around $300,000 per unit. They feature high-quality video and sound, with limited delays, making users almost feel like they are meeting in person. Despite initial skepticism over whether many businesses would pay so much, particularly in a weak global economy, TelePresence has become one of Cisco's fastest-selling products as companies seek ways to save on travel costs. Its recent acquisition of Norway's Tandberg also made it the world's leader in videoconferencing systems. The company had made no secret of its ambition to replicate that success in the consumer market, and Chief Executive John Chambers repeatedly vowed to come out with a cheaper version. While Cisco has not yet established itself as a consumer brand, it wouldn't be its first foray into the living room. It has acquired home router maker Linksys, cable set-top box maker Scientific-Atlanta, and more recently, the company that makes the Flip video camera. Cisco has also been advertising itself heavily in the past year, through product placements in shows like 30 Rock and advertisements using actress Ellen Page. SKYPE COMPETITION Analysts said the high price of umi may mean mass adoption is years away. Many predicted the price to come down over the next few years, but they also noted the likelihood that competitors like Skype would introduce higher-quality services in the meantime. Skype said in its blog that a $599 device could be "subject to obsoletism at the hands of mass-market options." 1 2 Next Technology Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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