HTPCs Satisfy a Niche for Builders

Microsoft’s Vista operating system made the home theater PC (HTPC) practical by baking media functions into Windows. But competition from smarter consoles like the Sony PlayStation 3 on the low end, Internet-enabled TVs and DVRs (digital video recorders) in the middle, and the new-housing construction slowdown make the HTPC market tight.

And don’t forget competition from streaming options like Netflix. “People don’t store as much of their content as they used to,” says Mark Hudgens,...