Sony Corp., the world's largest maker of video-game systems, will demonstrate its next PlayStation console today for the first time as the company seeks to overcome a yearlong head start by Microsoft Corp.
Microsoft grabbed a head start with its Xbox 360 going on sale last year, while Sony's PlayStation 3 and Nintendo's Wii are expected in the coming months.
"Being out the door first isn't nearly as important as being the best,'' Jack Tretton, 44, Sony Computer Entertainment America's co-chief operating officer, said in an interview. "It is the first lap in a very long-term marathon.''
One of the most anticipated titles is Halo 3, which is only avilable on Microsoft's Xbox according to game website IGN.
Sony is relying on PlayStation 3, with a faster chip and a high-definition DVD player, to revive earnings after profit fell 25 percent in the past fiscal year. The demonstration for thousands of game designers at the Electronic Entertainment Expo in Los Angeles gives Chief Executive Officer Howard Stringer, 64, a chance to take attention off Microsoft's new Xbox 360.
The challenge is mounting. Microsoft's device came out six months ago, while Tokyo-based Sony in March delayed the PlayStation 3 release until November. Microsoft's system has improved graphics and online game-playing features, and lets players add songs from CDs to the games.
"In North America, where Microsoft and Xbox are particularly strong, Sony will have much more of a fight on its hands,'' said Paul Jackson, an analyst at Forrester Research Inc., a researcher in Cambridge, Massachusetts. "It may even end up as a neck-and-neck tie at the end of this generation.''
Sony shares rose 90 yen to 5550 yen on May 2 and have gained 15 percent this year. Microsoft gained 36 cents to $23.80 on May 5 and has dropped 9 percent in 2006.
Dominating the Show
The PlayStation 3 probably will dominate the conference this year, American Technology Research analyst P.J. McNealy said. He expects Sony to have playable models on the show floor and a big focus on games and movies that use Blu-ray, Sony's new technology for playing high-definition DVDs.
The device, featured at last year's E3, hasn't been publicly demonstrated before today. Last year, Sony gave details including that the product would come in silver, white and black versions and have wireless Internet connections.
Analysts say Sony may disclose the price at this year's show. Tretton declined to comment. McNealy said he expects the cost to be $499. Redmond, Washington-based Microsoft, also the world's biggest software maker, sells the Xbox for as much as $399.
Sony also plans to promote the console's graphics, helped by its new Cell chip. The processor will make the system about 35 times faster than the PlayStation 2 and will render details such as how a light reflects in a character's eye, or strands of hair moving after a gust of wind.
Sony has never been first to market, Tretton said. The original PlayStation in 1994 trailed machines released by Nintendo and Sega Enterprises Ltd. With the PlayStation 2, Sony missed the 1999 holiday season and trailed Sega's Dreamcast. Still, the system was 18 months ahead of Nintendo's GameCube and almost two years ahead of Microsoft's first Xbox. [Bloomberg]
Comments