Sony Computer Entertainment will be responsible for developing this online gaming service that promises to match Xbox Live features and add digital entertainment capabilities to the offering. We believe that this could be a legitimate threat to Microsoft’s online gaming service.
Everyone loves Xbox Live Marketplace because for the first time we can download console game demos, watch movie trailers, and get other goodies, like Xbox Live Arcade games, dashboard wallpapers, and game avatars. But unfortunately, Microsoft hasn’t yet unleashed the full potential of digital delivery and that’s why you only need one hand to count the number of movie trailers available on the Xbox Live Marketplace. I’m still going to Apple.com to see movie trailers, both in standard and high-definition, and you are probably doing the same.
The other big problem we found out in Microsoft’s strategy is the decision to make the Xbox 360 a Windows Media Center Extender, instead of making it a Windows Media Center in itself. The current setup not only requires two devices to enjoy Windows Media Center capabilities, it also creates lot of issues to get the content. You only need to download and view the new MCE Network Video available on the Xbox Live Marketplace to see all the intricacies associated to have the Xbox 360 acting as a WMC Extender. They recommend wired over wireless network in a time where everyone wants to get rid of cables, and if you still decide to use wireless, Microsoft recommends 802.11a over the standard 802.11b/g. All these needs because of performance related issues so the Xbox 360 can receive the info from the Windows Media Center PC. Wouldn’t it have been easier if the Xbox 360 was the central digital entertainment hub instead of an extender?
Sony knows the answer and that is why the PlayStation 3 will be a media center in itself. They already performed a few Frankenstein-like experiments with the PlayStation 2, turning it into the PSX (a console that was only sold in Japan), so they know how to make their next-generation console a TiVo-like DVR.
So, what could Sony develop for the PlayStation 3 and its online service? Let’s see:
WWW: Just like the PSP has been enabled to surf the Internet, we expect Sony to allow web surfing on the PlayStation 3. In the current generation, surfing the Internet on a standard definition TV is horrid, but with a large screen HDTV, surfing the ‘Net in 1080p could turn out to be a great experience. Plus this “Broadband Engine” philosophy would not make sense if you can’t browse the Internet as you do on your computer.
Movies: Here is where Sony could give the Xbox Live Marketplace a run for its money. Owning all those movie studios would allow Sony to have time exclusive debuts of new movie trailers. Imagine PlayStation 3 users watching Sony Pictures’ Spider-Man 3 or MGM’s 007 Casino Royale trailers first.
There’s even more. Sony could also deliver TV programs, just like Apple is selling TV series for the iPod, directly to the PlayStation 3, for live viewing or to store on a hard drive and then play it back on a HDTV or a PSP.
The potential Sony has here is huge and could overshadow Microsoft’s attempt to the point where people could see Sony and the PlayStation 3 as the inventor of the “PlayStation Marketplace”
Music: Once again, Sony could use its big infrastructure to make a digital music store that allows you to purchase content using the PlayStation 3 to play on any device, including your PSP, a digital music player, or a Sony Ericsson Walkman phone.
Pictures: We take for granted that you’ll be able to view pictures on your PlayStation 3 in 1080p either by connecting a digital camera through a USB port or inserting a Memory Stick.
Sony could take things to the next level and allow connectivity to their ImageStation (
www.imagestation.com) digital imaging store to allow PlayStation 3 users to share and print photos online.
There’s nothing like that on Xbox 360 and Sony already has the infrastructure to make it happen. We believe it won’t be available at launch, but it’ll be a matter of time before they come up with this idea.
Location Free: You don’t know what that logo is? It has been recently added to the PSP menu with the latest firmware and it’s the logo for Sony’s LocationFree - a new product from Sony that allows you to view, anywhere in the country, television, video, Internet browsing/streaming video, e-mail, and digital photos either through a 12.1-inch wireless touch screen LCD monitor/computer or your PSP.
Rumor has it that the PlayStation 3 will be a LocationFree base station in itself and the idea is to fully explore the broadband engine concept so you can connect anywhere in the world to the base station (PS3) and receive content from it to your PSP. TV programs, movies, mails, newspapers, ebooks, etc.
If this happens to be true, this could be the Xbox Live killing application and something that will take a long time for Microsoft to develop. So far, Sony already has the LocationFree system developed and adapting it to the PlayStation 3 should be easy for them.
UMD: Sony can’t yet impose this format for portable video viewing, possibly because it was expecting too much from a proprietary format. That’s how it lost the war with Apple by not adopting an open format like MP3, but everyone thinks Sony learned its lesson.
This week, Sony announced a DVD-UMD deal for those who buy certain movies from Sony Pictures. What Sony is selling with this bundle, is your right to a certain movie. Once you buy the DVD, you also get the same movie on UMD for a few cents more. Analysts expect the same deal to move the Blu-ray Disc once the format debuts.
High-definition movies will be too large to deliver digitally, but delivering UMD movies is viable to current broadband connections. So in the future you’ll buy a Blu-ray Disc movie and the proof of purchase carton will allow you to download that movie in UMD format for your PSP.
This could help Sony in popularizing the UMD format while adding another killer application to the PlayStation 3.
Gaming: You might has asked yourself how we can talk about an Xbox Live killer and we haven’t touched on gaming yet! Well, that is on purpose because what we want you to realize, as we mentioned earlier, is that this war is not about online gaming.
You can bet that Sony will copy every gaming feature seen on Xbox Live; leaderboards, matchmaking, clans, gametags, gamer pictures, game mottos, etc.
But for a user that has to pay for a subscription service, if both services offer the same online gaming features, it will be the additional features that determines which service succeeds.
As you can see, the threat is real. The possibilities are there and it’ll be up to Sony’s willpower to make all these features a reality. If Sony Computer Entertainment does online gaming right, the PlayStation Network could eclipse Xbox Live with these additional features.
Blu-ray Disc, the PSP, Sony Pictures, LocationFree, Sony Ericsson, Memory Stick, ImageStation are real. Perhaps you care about online gaming the most, but for a service to reach a broader audience it will be up to the entire feature set. That’s why we think Sony has a real chance to build an Xbox Live killer.
If this happens to be true, Xbox Live could be remembered as Microsoft’s one big punch to a karate master from a student who is still not a black belt.
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