An anonymous reader writes "According to the Hollywood Reporter and news.com, Blockbuster will soon be announcing yet another reason not to go to a rental store. A media-delivering set-top box is in the works for the company, leveraging the store's existing competence in the industry to provide a viable alternative to iTunes, Xbox Live, and Amazon. 'There was no mention of price or how such a service would work in the report. But let's think about this: to compete with Apple TV or Vudu, the device would have to cost around $200, and rentals of movies and TV shows should be around $3 to $4 each, which would be slightly cheaper than rentals of new releases from Blockbuster currently. The big advantage Blockbuster would enjoy over Apple TV, Vudu, and TiVo, it seems, would be selection.'"
I still think they're kinda doomed.