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The Xbox 360 Pro (aka Premium) will now cost $50 less.

(Credit: Microsoft)

A couple of weeks ago I wrote about rumors that Microsoft was planning to chop the Xbox 360's price in July. Well, that price cut was all but confirmed today by Kotaku.

After posting leaked photos of upcoming Best Buy, Kmart, and other circulars, the gaming blog now has a GameStop employee's cell-phone snapshots of shelf art and an internal memo announcing that the Xbox 360 Pro (aka the Premium) would drop to $299.99 on Sunday, July 13. Not coincidentally, E3 kicks off the next day with--you guessed it--Microsoft's press conference.

As Sony's PlayStation 3 has come on strong in recent months, sales of the Xbox 360 have been flat, so a price drop seemed likely. The success of Metal Gear Solid 4 continues to give the PS3 a boost, but chances are Sony, too, will have to trim the price of its console before the holiday buying season.

All that said, the big question remains whether Microsoft will announce any new configurations of the Xbox 360. Rumor has it, the company is just using the price drop to clear out inventory of the 20GB Premium before it brings out a new 60GB version. (Of course, if you're willing to take a chance on a refurbished Premium, you can do significantly better than $300). There's no word on whether the Xbox 360 Elite or the Arcade (no hard drive) will also get $50 snips or whether a flagship model with a built-in Blu-ray drive is really in the works.

Personally, I'd like to see Microsoft get rid of the useless Arcade and reduce the number of Xbox 360 choices down to two to avoid confusing consumers. Anybody else want to guess what Microsoft has up its sleeve next week and what Sony's next move will be?

After navigating some rough seas, Sony's Electronics division has been starting to right the ship.

Over the past year, the company has been forced to rethink its product lineup and catch up to competitors in some cases, but now the Japanese electronics giant's U.S. division is looking ahead and betting big on the future of flat-panel televisions and high-definition media.

CNET News.com sat down with the head of Sony Electronics' U.S. operation, Stan Glasgow, to talk OLED (organic light-emitting diodes) TVs, Blu-ray Disc, the importance of the PlayStation 3, consumer electronics, and the dwindling margins for manufacturers and retailers on notebook PCs.

During our chat, Glasgow made it clear that Sony is only focused on TVs when it comes to the impossibly thin OLED technology and that soon the company's 3mm-thin TV will be even thinner. And, though the company just won a long and drawn out format war with HD DVD, Glasgow spoke openly about the limits of Blu-ray and what the medium still lacks. Plus, he sounds pretty high on the mini-notebook concept, even if he won't admit the company is developing a product yet.

Stan Glasgow, president of Sony Electronics USA

(Credit: Erica Ogg/CNET News.com)

The following is an edited and condensed version of the interview.

Q: You have an 11-inch OLED and said you'd be putting $200-plus million into the next stage of investment. How big are we talking here in terms of screen sizes?
Glasgow: In the short term, which is a couple of years--I'm not going to be more definitive than that--we have targeted a 27-inch. We've showed it as CES, we've targeted the initial investment, and that's what we're looking at in the short term. Certainly in the longer term we'd like them to be the same size as LCD. We'd like them to be 52 inch, 46 inch, 36 inch...it's just a matter of time.

What about affordability? How long until these are affordable for the mainstream consumer?
Glasgow: It's going to be years and years until price points come down to where they're anywhere close to LCD. In the not-too-distant future, you'll have a choice in LCD at this size, or you can buy an OLED at the same size at a premium. I almost see it as a potential--and I don't know this, nobody knows the answer--I almost see this as the upper end of flat-panel television.

We can continue to make it thinner. It's 3 millimeters now, but it can get thinner. Eventually it's printable on a plastic substrate that can bend. But I don't think it's going to take many years to get to that level.

What about applications in other devices? I know Samsung's talking about monitors next year.
Glasgow: We are focused on TVs. Our interest is strictly television at this moment. I'm not saying that will never change, but at this moment that is the most complex area to go after. The bigger you make these, the more complicated they are. They're much simpler to make smaller. So it'd be easier to jump into cell phones, and other types of products, but that's not what we're interested in doing. We're interested in television as our major focus. Our engineering is focused there, and our investment is focused there.

Speaking of televisions, the experiment mentioned last week, with Hancock coming out on the Bravia Wireless Internet Link, is that a one-off kind of thing? Or is there more in the works there?
Glasgow: I'd say maybe it's a step above an experiment. It's brand new what we're doing, how we're doing it. We're trying to excite people by giving them content. It's streaming so we don't have the content protection problems...(But) people's bandwidth across the country is very different.

Prototype OLED TVs

(Credit: Michael Kanellos/CNET News.com)

The big problem in the United States is we don't have enough bandwidth to really drive content through the Internet and our pipes. Japan has much better pipes, so does Korea, so does Europe. So it's still experimental. we hope to do more in the future, and it's the first one. We're going to try and see what happens.

What about non-Sony content?
Glasgow: It's possible in the future. I'm not going to rule that out; I don't think anyone at Sony would rule that out. (But) we think it's a good first step.

Besides interactive menus feature on Blu-ray, is anyone doing anything that's a really creative use of the medium that we don't know about yet?
Glasgow: There's so much I have no idea about, because we're going to have to open this up as a social network--not just contributions of Sony and other Blu-ray partners. There are going to be contributions from actual customers.

If we had a dream (for) Blu-ray, it would be much more interactive than it is today: No. 1, where you could interface and change things as you want to see them on the screen. No. 2, you could socially interact with other people, it's connected through the Internet...but theoretically you and your friend could watch the same movie, and you could change themes, change endings, all sorts of strange things in the future. Some type of social interaction in the future....And yes, we'll have a lot more (Blu-ray) product out in the next couple of months.

Looking ahead, you're only just getting into Blu-ray. How do you see the future penetration of the format compared with DVD?
Glasgow: That's a good question. DVD took 10 years to really penetrate. We're now in the second year of Blu-ray. My guess is it will probably happen a little quicker in terms of penetration. The pricing is already coming down more quickly than DVD came down. I don't think it will take as long as 10 years, but I don't think it will penetrate to the same percentage because there's a couple of conflicting forces. Certainly, people that want the best picture are going to want it, without a doubt. People that are OK with upconverting DVD players, which is somewhere close to 600, 650, maybe 700 (lines of resolution)--that's not a bad picture either. So a lot of people may be happy with an upconverting DVD player. And (Blu-ray) may not turn over, it may not penetrate to the same extent, because (DVD) was such a big medium change from tape.

But I see it being the major format. It's won the war, that's done. Now it's a matter of: Can we provide an exceptional experience? Can we provide a social part? And can we involve the overall community in, let's say, designing applets and coming up with new things that we can't even think of today?

How critical is the PS3 to your overall electronics strategy here in the U.S.?
Glasgow: I think that there's strength in Sony...it's about having a gaming division and an electronics division, a pictures division, a music division--we've never worked together like we have now. Hancock is a great example. We're so well-connected together. Here we are doing an experiment with a film. We're going to promote the heck out of it through our electronic retailers. The gaming division is working on it at the same time. (The) music (division) is involved. We're operating as a very balanced group. So what I can say is, without the gaming, we wouldn't be as strong and as balanced as we are today. It adds a great deal.

What do you think the effect of these ultra-low-cost computers' popularity will continue to have on the notebook business?
Glasgow: The question is, how important is that in the United States and developing countries? We're doing a lot of research on what consumers want and don't want. And I think we'll get it figured out over time. But is it worthwhile to have a second notebook that starts up quickly, can only do e-mail and connect to the Internet, can't do spreadsheets, and other things you'd normally do? Those are the things we're testing right now.

But what do you think? Do we need fewer devices? Or more?
Glasgow: I'm not the normal consumer obviously. I do an awful lot of e-mail, I connect a lot. I'm not happy with the (BlackBerry-type devices), like this Sony Ericsson I carry around. I find it hard reading, I'm getting older, and it's getting too small. But I don't want to carry my notebook around because it takes awhile to start up. So something in between would be very cool, and it wouldn't bother me to have an extra PC around.

That's sort of what we're thinking in this country. I think the emerging countries are different...But in terms of the U.S., we have a lot of homework to do.

Now, last month there was a report that Quanta was making a mini-notebook for you guys. Is there any truth to that?
Glasgow: I can't say yes or no. I love all the rumors, though.

What do you think about this Blockbuster/Circuit City proposed tie-up as far as retail electronics goes? (Note: later that same day Blockbuster announced its plans to abandon its bid for Circuit City.)
Glasgow: It's fascinating what's happened in the last 10 years in electronics retail. The big have gotten much bigger and extremely successful, like a Best Buy. The smaller guys, regional retailers, have done extremely well. The middle-sized guys have gotten into a lot of trouble. It seems that the companies expanded too much, but haven't prepared the infrastructure properly to service customers.

It's also interesting to watch how well Wal-Mart and Target have been doing, in terms of building more consumer electronics...

Circuit City--we want a very strong No. 2 (electronics retailer). Best Buy is certainly the leading company. We would like Circuit City to be strong. How that gets done--it can be done in many different ways.

My hope is that either by themselves, or by merger, or by working with another company that they'll be stronger than they are today. We think the possibility is there, and we support them. A good, strong No. 2 player in consumer electronics is a positive thing for manufacturers. They've got 800 stores. There are not many companies that have 800 electronics stores.

(Credit: Fring)

After so many announcements for this or that application's Facebook appearance, it's nice to see Facebook play a supporting role in kind.

On Tuesday, Fring, a VoIP and IM application for a range of mobile phones, added the ability to fold Facebook into the communicator, through a new Settings menu option called fringAdd-ons. Gmail Notifier, Orkut, vTap videos, and Yandex.mail are also in there, together representing the first extensions created by third-party developers using Fring's application programming interface.

Exactly how many add-ons join this handful will depend on Fring's popularity with casual developers. Fring is not the only mobile software company opening its API to programmers. In fact, crowd-sourcing software authors is now seen as integral to a mobile software publisher's strategy and success. iPhone is the biggest honcho to have more recently welcomed developers, and the success of Google Android as a mobile platform is tied to the mostly independent developers fighting to win big money for their grand ideas and edgy implementations.

So far, connector programs like the Facebook add-on are a good start. Relatively easy to make, programs like these help Fring close in on bragging rights for being the most far-reaching social networking hub out of all the multinetwork text and VoIP (voice over Internet Protocol) communicators without putting forth additional development dollars.

FringAdd-ons are currently available for the latest versions of Nokia Symbian 9, Sony Ericsson UIQ, and Windows Mobile.

The Gateway notebook roll-out is official. Sony's is not. Gateway Computer announced three lines of notebook PCs on Monday with 64-bit Windows, while Circuit City prematurely posted images of upcoming Sony notebooks.

Gateway 14-inch T6836

(Credit: Gateway )

Gateway rolled out three notebooks targeted at students. The P series desktop replacement comes with a 17-inch widescreen, the M series with a 15.4-inch screen, and the T series uses a 14.1-inch screen.

All systems come with 64-bit Windows Vista Home Premium and pack 4GB of memory--the minimum for acceptable performance in 64-bit Windows.

(See Gateway goes all 64-bit in back-to-school desktops.)

The 15-inch "Garnet Red" Gateway M-6848 is spec'd with an Intel Core 2 Duo T5750 processor, 4GB of memory, a 250GB hard disk drive, 802.11a/b/g,a wireless, DVD-R/RW drive, and Vista Home Premium 64-bit with SP1. It retails for $799.99.

The 14-inch "Pacific Blue" Gateway T-6836 notebook has virtually the same specifications. It also retails for $799.99.

Other features include a multimedia panel integrated into the keyboard, DVD burner with LabelFlash technology, and an integrated Webcam.

Upcoming Sony retail notebook

Meanwhile, details about upcoming Sony notebooks continue to seep out.

Circuit City prematurely posted photos of the upcoming Sony portables. (Though Circuit City has pulled the links, cached images are still accessible.)

Last week, less colorful user-manual images appeared at Notebookreview.com as well as tidbits about various models. Apparently, models will use Intel's next-generation Centrino 2 "Montevina" processor, graphics chips from Advance Micro Devices' ATI unit, and sport 13- and 16-inch screens.

Sony STR-DA4400ES: the flagship receiver in the company's 2008 lineup.

(Credit: Sony)

Sony has unveiled three new AV receivers in its flagship ES ("elevated standard") lineup. While the company's announcement is light on specifics, it looks as if some or all of the models will offer the lossless audio decoding for Blu-ray movies, graphical user interfaces, Sirius and XM satellite radio compatibility, automatic speaker calibration, and upscaling of analog video sources to 1080p HDMI output. Model-by-model details include:

Sony is set to refresh its notebook lineup with upcoming mobile chips from Intel. Specifications posted on some reseller sites and leaked in Sony documents show a major refresh potentially in the offing.

Sony Vaio laptop

(Credit: Sony)

This may be good news for Advanced Micro Devices, too: its mobile graphics processors look to figure prominently in the new lineup.

A post on Laptoping says some model will come with 16.4-inch screens. Other models include ultraportables "featuring a 13.1-inch screen," Laptoping said. This series, as well as other Sony notebooks, will have a High Definition Multimedia Interface (HDMI).

One reseller lists a Sony Vaio VGN-FW198U/H laptop with a 2.53GHz Intel Core 2 Duo T9400 processor, 4GB of memory, a 320GB hard disk drive, and a Blu-Ray disc drive. A price of $2,149.99 is given.

The T9400 is not yet listed on Intel's processor pricing page, but logically slots in below the T9500 (2.6GHz) listed at $530.

This document posted on notebookreview.com shows a VGN-FW100 series image. One model (Vaio VGN-FW160E/H) posted on notebookreview.com is spec'd with a 2.26GHz Core 2 Duo P8400, 4GB of memory, a 250GB hard disk drive, and Blu-Ray Disc drive.

The P8400 is part of the P series of upcoming Intel processors that uses less power than current mainstream mobile processors.

The Vaio FW series is expected to pack AMD-ATI HD 3470 graphics as well as other graphics processors.

A consumer notebook line with 13.3-inch LED backlit LCD is also cited with an ATI Mobility Radeon HD 3470 graphics chip on various sites. Models listed here specify an Intel Core 2 Duo P8400.

Sony said it would not comment on speculation.

Sony will soon add a Google Internet search feature as part of a software update for the PlayStation Portable.

Sony PSP

(Credit: Sony)

On the PSP blog Monday, Sony said the new upgrade, v4.00, "replicates the Google Internet search experience.

PSP users will need to be connected to the Web via Wi-Fi. The move represents Sony's continued efforts to expand the Internet features of the handheld. Of course, what users really want is an easy way to download movies off the Web.

Nonetheless, the company continues to force users to buy the much rejected Universal Media Discs (UMD), the mini DVDs that Sony built especially for the PSP, or hack the device with video converters.

Sony said the upgrade will also give users the ability to change speeds on playback of video stored on Memory Stick PRO Duo. This allows the viewer to scan quickly through a movie or slow it down.

The chatter for a July price chop gets louder.

(Credit: Microsoft)

With Metal Gear Solid 4 finally available for the PlayStation 3, it doesn't take a genius to predict that the PS3 is going to get a boost from having a hit console-exclusive title under its belt. Nevertheless, analysts are boldly proclaiming change is asunder. Sony's got the Big Mo--as in momentum--while Microsoft's got the big Slo--as in demand for its Xbox 360 is slowing down. Which inevitably means the price-cut rumors are getting the Big Sto--as in stoke those flames, baby.

Joystiq is reporting that EEDAR analyst Jesse Divnich, "Believes the PS3 is going to keep increasing its sales and Microsoft will announce a price cut for the Xbox 360 at E3" next month. And in another shocker, Divnich, "Foresees the PS3 gaining momentum and claims Metal Gear Solid 4 will actually have a greater impact on the console's hardware sales than Grand Theft Auto IV did." God, these guys are good.

The post goes on to note that the "Xbox 360 could also get a new hardware SKU with added features" (Blu-ray anyone?) and that Divnich claims that "if Microsoft does cut the price, Sony will respond with a drop of its own within two months." Unfortunately, Divnich doesn't predict exactly what the price cut will be, but I'm saying $50 across the board, with the XBox 360 Elite dropping to $399.99, the Premium (20GB) to $299.99 and the Arcade (no hard drive) hitting $249.99 or even less. It's about time someone matches the Wii's pricing, right?

Anyway, feel free to predict your own pricing scenarios and new models in the comments section.

(Credit: CableLabs)

Update: Subsequent to the publication of this story, Panasonic has released a more detailed statement on the status of its Tru2way TVs.

CableLabs' Tru2way got a big boost last month when Sony signed on with a pledge to design and deliver TVs that incorporate the standard, bolstering an already impressive list of backers. The Web was flooded with optimistic reports of a post-cable box Valhalla where you could simply buy a Tru2way TV, screw in your coaxial cable, and have plug-and-play access to your 1,000-channel universe. Before those miracle TVs hit the market, however, they need to be certified by CableLabs--and there are rumors that the initial trials aren't going well. According to IP Democracy, the initial certification tests for Panasonic Tru2way TVs were unsuccessful--to say the least. The post cites "folks close to Tru2way" as calling the Panasonic tests a "'disaster of spectacular proportions'" that resulted in "'dozens and dozens' of bugs."

In an attempt to verify those dire--but anonymous--quotes, we contacted Panasonic and CableLabs for their responses. ... Read more