Microsoft is currently kicking Apple's ass.
Well, this was a bold statement. Let me rephrase.
Microsoft is winning the battle for the living room. It is well known, that whoever wins this battle is going to win the war for 'Complete Media Experience'. Microsoft's strategy is based on Xbox 360, Zune, Windows Media Center and Windows Vista.
On November 22nd one will be able to watch a TV show, sync with Zune, play music/games and stream videos on an Xbox.
Apple should be doing this, but they are late in the game. A full screen iPod is lagging. So is iTV. There is still no product in the public pipeline that could compete with Media Center. It's video offering is, at this time, shameful.
It's going to be a fun 2007.
-- This post was written on my iMac. Just to balance out the subjectivity.