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Raspberry Pi and XBMC/Android 4.0 ICS as media player?

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So the Raspberry Pi can almost run Android 4, and XMBC has been ported to Android. Could this be the ideal low budget media player? I understand it can do 720p but 1080p is a bit much for it, which is fine for me.

Add a case, plug it in to power, ethernet, and HDMI, find some way to control it perhaps with a Harmony remote, no need for a big expensive power hungry PS3 any more?

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