For Sony, the PS3 is about more than gaming

(continued from previous page)

First, the company is counting on the PS3 to put Blu-ray players in millions of households and drive sales of Blu-ray movies and other content. Some even think that Blu-ray buyers may choose PS3s because its price is significantly lower than standalone Blu-ray players are expected to be.

"The PS3 is critically important to the future of Blu-ray," Semico's Downey said. "Sony's been betting on the PS3 to launch Blu-ray for some time now, so they're really hoping (it) will sell well and take off and get Blu-ray into all those households."

If the PS3 doesn't sell well, "would Blu-ray still win?" asked Ted Schadler, an analyst with Forrester Research who has predicted the format's ultimate victory over the competing HD DVD. "My bet is that it would. But it would be a slower victory. The PS3 is like an accelerant (for Blu-ray), like gasoline on the fire. It could delay the clear winner (of the Blu-ray/HD DVD war) by a year if this thing bombs in the market."

Similarly, Sony and partners IBM and Toshiba have invested hundreds of millions of dollars in the creation of the Cell processor, the PS3's brain. Some industry watchers believe that the investment is riding on the console's success.

That said, Tony Massimini, chief of technology at the analyst firm Semico, said he sees the importance of the PS3 to the processor and the infrastructure but believes that the companies behind the Cell will push it regardless of PS3's fortunes.

"Initially, the PS3 is important. But in the long term, it's (just) one of several markets," said Massimini, referring to high-definition video equipment and other products that can use the Cell. "I don't think it would necessarily (be a problem) for the Cell (if the PS3 fails). Too much has been put into it."

Sony also hopes the PS3 can play a big role in the digital living room.

Richard Doherty, president of the analyst firm Envisioneering, said the PS3, which ships with high-speed, gigabit capability, could be the device that enables consumers to bring in all manner of multimedia content to their homes for years to come, much of which Sony will surely try to sell directly or at least get some revenue from.

Sony acknowledges the importance of the PS3 to its future.

"I think we've (the PlayStation group) contributed up to half of the bottom line profits to Sony," said Jack Tretton, vice president of sales and marketing for Sony Computer Entertainment America. "We're a key pillar in the Sony strategy. (But) with that comes a lot of expectation and a lot of pressure."

The console could have a big effect on sales of Sony high-definition TVs, Sony's movies on Blu-ray DVDs, and the company's music library, he said.

"In the past, we were in the gaming business, and the gaming business had very loose ties, if any, to other (Sony) divisions," Tretton said. "With PS3, we have very direct ties."

Ultimately, Sony has great hopes for the PS3. But the ragged lead-up to the product launch early Friday morning has reminded many of how much the electronic giant has riding on this release.

Sony's "legacy is that they're an engineering company, and that's what they hang their hat on," Shim said. "So if they're unable to put out a product that doesn't have bugs, then that hits them right in the heart of their competency."

[BalramRules]

PS3 FTW!
360 JUST GO TO THE BIN AND LIVE IN IT, NO ONE WANTS YOU!
Wii, you're alright, I don't mind you, come on, go to your TV Room and have some casual gaming, AS IM ABOUT EVERYTHING, ALL IN ONE AND THE CONSOLE MADE FOR ME IS THE PS3!!!