Apart from such gee-whiz devices, older technologies such as digital television, DVD (digital versatile disks) and home networking were also finally winning their places in the market.

Exhibits of crisp flat-panel televisions, crystal clear home theatre sound systems and DVD players with super-fine resolutions drew huge crowds and were hailed by industry leaders as engines of growth for the sector.

Sales of consumer electronics were seen hitting a record $85 billion in 2000 in the United States, about 5 per cent more than last year's $81 billion, according to data released by the Consumer Electronics Association on Thursday.

With the average American household spending $1,000 per year on electronics -- double the amount spent on furniture, toys or sporting goods -- electronics companies are scrambling to rush out newer and better products.

"In the next five years, our newly focused industry will generate more products in more configurations and combinations that in the entire history of the consumer electronics business," Gary Shapiro, president of the Consumer Electronics Association, said in a keynote speech.

"Content will be delivered to consumers by an incredible array of boxes. Today it is personal video recorders, CD players, computers and Web boxes," Shapiro said.

"We will see an increasing selection of boxes, but also integrated products and home networks. Information and entertainment will be stored on a home server, accessible from any room or anywhere," he said.

Driving home that point, the show floor was dotted with fancy mock-ups of homes boasting the computer displays on just about every appliance, from stoves to refrigerators to microwaves.

Each of the event's three keynote speakers, Microsoft Corp chief executive Bill Gates, Sun Microsystems Chief Executive Scott McNealy and 3Com Corp's chief executive Eric Benhamou all showed off their versions of tomorrow's wired home.

"The real opportunity is networking things, and that's a big challenge," McNealy said.

At its sprawling display, Panasonic, a unit of Japan's Matsushita Electric Industrial Co Ltd, demonstrated a microwave with a computer display and Internet connection that could analyse the content of a refrigerator and suggest dishes and programme itself to the proper cooking settings.

Philips Electronics' home came equipped with a small Screen on the bathroom mirror so mom or dad could check stock prices while getting ready for the day, and a wireless keyboard in the kitchen to control all the appliances.For those not yet up to the task of wiring an entire house, the show offered plenty of dazzling video and audio products for the living room or to take on the go.

Japan's Sanyo Electric Co. attracted a long line of visitors waiting for a glimpse of a three-dimensional television that doesn't require special glasses.

The set uses a beam-splitter to send an image to the left and right eyes at different angles, creating a sense of depth. The device is being shipped in sample quantities and is expected to find initial use in hospitals and graphics design labs. If it's sound you want, many companies were jumping on the digital music bandwagon, spotlighting new gadgets that can play music download ED from a PC or the Internet.

One of the most unusual examples was Japan's Casio ComputerCo. Ltd, which is making a wristwatch that can store about 30 minutes of near CD-quality music. The device is expected to ship to the United States in April and sell for about $250.

Sanyo, Philips, Sony, and others also debuted portable digital music players, which are seen winning broader acceptance this year after disappointing sales in 1999.

Another Casio prototype watch had a small digital camera built in that could take black and white photos and show them on the watch face. It could store about 100 pictures, and an optional separate printer could create stickers sporting the images.