Microsoft (NASDAQ:MSFT) says it's time to get the PC out of your office and into your living room.

The world's largest software company teamed up with several hardware makers today to introduce the latest version of Windows XP Media Center, which gives users a single control center for live and recorded TV, movies, music, photos, and radio. Combined with Media Center PCs from such manufacturers as Dell (NASDAQ:DELL), Sony (NYSE:SNE), Gateway (NYSE:GTW), and Hewlett-Packard (NYSE:HPQ), the technology enables technophiles -- with a single remote control -- to:

  • Pause, rewind, and record live TV -- just like TiVo (NASDAQ:TIVO).
  • Record TV content onto DVDs.
  • Copy CDs and manage music collections.
  • Pause, rewind, and skip ahead in FM radio broadcasts.
  • Manage digital image collections (has slots for CompactFlash and Secure Digital Cards).
  • Connect to on-demand content providers to download music, movies, games, etc.

Oh, and the box also provides all regular computing functions. The Media Center PCs range in price from about $1,000 for a Dell Dimension model to $4,000 for more elaborate boxes.

"Our goal," Bill Gates told the Associated Press, "is to create software breakthroughs that break down the boundaries between the different devices people use in the home and make the most out of all the technology available today."

While it's easy to imagine PCs being the centerpiece of all home entertainment centers in the future, Microsoft is going to have to get three things right: stability (no crashes or lockups), security (no worms or viruses), and privacy (no transfer of consumer information to third parties).

Otherwise, forget about it.