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Yes those are speakers, you can change the decks with other colors but not with photo's (good idea though) The cables are in the wall, they come out of the wall on the floor... wishes of the misses :)

I have my surround cables in the walls from when we built the house. Just got some small speakers.

That's indeed the same we did, when we moved in we put them in the wall before the finishing of the walls. It's more nice than the cables on the wall.