Well I think this pretty much keeps AMD out of the Playstation business.
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Intel, Sony to Form Electronics, Computer Alliance
Tokyo, Feb. 17 (Bloomberg) -- Intel Corp., the world's biggest chipmaker, and Sony Corp., maker of the PlayStation video- game machine, said they will develop home electronics appliances that can be linked to the Internet.
The agreement reflects the companies' push to boost revenue from networking technology. Sony is looking for ways to join its televisions, camcorders and the PlayStation2 video console, due for release in Japan March 4. The products will be able to share content such as music and images and create demand for the chips and networking equipment Intel makes.
``Lots of companies want to move into this sort business,' said Michael Leichsenring, a Towa Securities Co. analyst. He said the companies are likely to develop an open ``architecture' that would allow others to use the technology. ``It's not in either companies interest to develop proprietary networks.'
The venture probably will be tied to Intel's development of a so-called electronic home, which contains easy-to-use computerized appliances such as a voice-activated cooker or computers stored inside pieces of furniture, permanently on and hooked up to the Internet.
Intel and Sony are ``working together on standards that would allow consumer electronic devices and PCs to work together,' said Intel spokesman Bill Calder.
Sony shares surged as much as 1,580, or 5.7 percent, to 29,480 yen in Tokyo afternoon trading and closed up 3.6 percent at 28,900.
Other companies are pursuing the strategy. Sharp Corp., the world's largest maker of liquid crystal displays, last year put on the market a microwave oven with Internet access. The oven downloads menus online to automatically prepare meals.
Intel's plan to cooperate with Sony was reported by ZDNet news service, which cited Patrick Gelsinger, vice president and general manager of Intel's platform group. Gelsinger disclosed the plan on the first day of an Intel forum in Palm Springs, California.
The two companies will announce details of the alliance at a later date, said Masatoshi Mizuno, a spokesman for Intel's Japanese office, though he declined to say when.
Feb/17/2000 3:00
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