The age of convergence technology is dawning, with the battle for digital dominance moving away from productivity tools into entertainment and the digital home.

The move is no surprise to Mac users, but its significance is growing fast in Sillicon Valley, according to

Big players such as Intel, HP and Microsoft are joining Apple to focus on the sector in a move that confirms late 1990s talk of digital convergence, a strategy that was put on ice while the industry dealt with the dot-com bust and a three-year IT slump.

The business plan is changing. With DVD players, digital cameras and digital music players such as Apple's iPod, a selection of circumstances mean the consumer market is primed for action, and the shape of tomorrow's confluence of tech will be shaped by consumer need.

Silicon Valley is buzzing, Creative Strategies analyst Tim Bajarin said: "The Valley sees the consumer market for digital technology as totally untapped worldwide – and they're moving aggressively to make sure it gets tapped."

Parks Associates analyst Kurt Scherf said: "We anticipate that a significant amount of consumer spending will be aimed at products and services that capture consumer demand for entertainment on their terms; that is, content anytime and anywhere within the home."