“I think we will break down barriers between industries,” said Paul Otellini, Intel CEO at their Intel Developers Forum.

Joining Intel in enabling their efforts were Adobe (with Flash) and Microsoft (News - Alert) (with Silverlight) who both agreed to support video and animation on Intel’s OS known as Moblin. Intel’s ATOM chipset can support Microsoft Windows or Moblin.

Acer, Asustek and Dell (News - Alert) committed to working with the application technologies from Intel.

While no deals are exclusive with Intel, the goal is to provide a clearinghouse of applications that can also support devices and gadgets not specifically aimed at providing phone or computer services.

These smart products in effect are a new category of solutions, including mobile video or gaming devices.

In previous years the ATOM chip was instrumental in the development of the Netbook strategies of many companies and the laptop for the “every child” movement of Nicholas Negroponte (News - Alert).

The diversification is an indication that the netbook market has stabilized and opportunity is now in specialized smart products.

The reports of I-Rex technologies selling their e-book device with Verizon (News - Alert) via Best Buy is a further indication that smart products are going to continue to expand.

The form factors for video systems may also be changing as the adoption of video codes continue to support networking ability. It’s conceivable that these devices will allow services that are beyond pay per view particularly if the include network storage abilities. For example, access rights could enable direct selling of TV series seasons and associate more directed video that would enable TV to be more like gaming systems.