The next generation of WebTV devices will run Windows CE and include such software as Pocket Word and Pocket Excel, allowing its users to run these versions of popular Microsoft applications on a television set. Philips, Sony, and Mitsubishi are now developing prototypes of third generation WebTV set-top devices that will include smart card storage devices so that users can store documents and load new programs into the system. Also expected: An integrated DVD player that will allow the device to double as a home theatre component. WebTV DVD machines will also support DVD-based games. Expect to see these powerful new devices in store by Christmas or early 1999