Makers of routers and other network switcheroo hardware are perfectly placed to slap their gear in a nice box, add some codecs and DSP chips, and call it a media player. Linksys is the latest player on the board, with the KiSS 1600 spotted at CeBIT.
The current gen of WMPs are HD-friendly (unlike TiVo's, for example, which make you pay extra to permit this arbitrary increase in output resolution) and can deal with movies, plain images and music slurped up from networked storage or the internet. It's also got a DVD player and a scaler.
CeBIT 2007: Linksys unveils KiSS 1600 wireless media player [TechDigest]