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To: Andy M. who wrote (22238)	6/2/2000 2:57:00 PM
From: Paul Lee	Read Replies (1) \| Respond to of 25814

from today's WSJ June 2, 2000 Sony Will Open PlayStation 2 Format For Use by Other Electronics Makers Move to Dominate Internet Access Comes as Microsoft Plans X-Box By ROBERT A. GUTH Staff Reporter of THE WALL STREET JOURNAL TOKYO -- Sony Corp., in an unusual bid to turn its game console into a leading device for accessing the Internet from homes, will begin licensing the company's PlayStation 2 format to companies that want to build the technology into other digital devices such as cable television boxes, computer accessories and competing game players. The plan, which could begin as early as next year, is the clearest sign yet that Sony is trying to quickly turn its speedy game console into the dominant home-entertainment device for accessing the Internet. The move harks back to the early days of the personal computer, when International Business Machines Corp. opened its personal-computer technology to so-called clone makers. That decision is credited with sparking the rapid spread of PCs. Sony's decision also thrusts the company headlong into a race with Microsoft Corp., which in March said it will begin marketing an Internet-capable game machine called the X-Box in the second half of next year. The PlayStation 2, and any devices built to include its technology, could also emerge as a threat to the personal computer's ambitions to become an even more widely used home Internet appliance. "The PlayStation 2 ... should be opened to the outside world," said Ken Kutaragi, president of Sony Computer Entertainment Inc., Sony's video game unit. "We hope that all of our partners will start thinking about using our technology." Launched in Japan on March 4 and slated to hit the U.S. in October, the PlayStation 2 is the high-speed successor of Sony's original PlayStation game machine, which is build exclusively by Sony. The PlayStation 2 has ports for connecting to the Internet and high-speed graphics processors for running life-like games and movies. Executives didn't give a time frame for when Sony would offer the technologies to outside parties. Mr. Kutaragi said it would happen after they ramp up production of chips for the PlayStation 2, which he said would be sometime next year. Sony Thursday said it would spend 125 billion yen ($1.16 billion) to boost production of PlayStation 2 chips. The plan to open the PlayStation 2 stems from Sony's need to rapidly create a universe of machines that can run PlayStation software. The company and its partners are developing all kinds of graphical software and services, such as games and interactive movies, that can be shipped over the Net to the PlayStation 2. By enlisting other companies to build PlayStation 2 hardware, Sony thinks it can spur the market for such services. "This could be something more than a game machine, more than a personal computer," said Sony Chairman Nobuyuki Idei. Executives didn't disclose details of the plan, but said they will likely offer the PlayStation 2's chip-sets, software and various pieces of intellectual property such as trademarks. Mr. Kutaragi said that Sony has already been approached about licensing the technologies. He didn't name the parties but said that he thinks cable set-top box makers, computer vendors and other digital-appliance vendors will be interested in the platform. Write to Robert A. Guth at rob.guth@wsj.com