To: Mihaela who wrote (66426 ) 2/22/2001 4:59:32 PM From: Mihaela Read Replies (1) | Respond to of 93625 Saw on the fool.www0.mercurycenter.com Sony in deal for networked arcade games TOKYO, Feb 21 (Reuters) - How will teenagers play arcade video games in the future? Giggling away with friends or alone in a networked world, battling anonymous foes in foreign cities, miles away, communicating only through blinking screens? Sony Corp's new video game alliance announced on Wednesday showed that the arcade centres of the future could very well be a combination of the traditional physical game centres of the past and a new entry point into a cyberworld for a Web generation. Sony will join forces with two Japanese arcade game operators, Sega Corp and Namco Ltd, to build an advanced version of PlayStation2 to be used in game centres. The new console, however, will carry some major enhancements seperating it from the PlayStation2 it rolled into living rooms last year. These include monitors and video cameras rigged up to a high-speed network to connect players in different centres. The move, analysts say, reflects a push by Sony to promote its popular PlayStation2 game console as an all-round platform for entertainment in a new era of high-speed digital networks. The console will be developed by Sony's game unit, Sony Computer Entertainment Inc (SCE), which said on Wednesday it expects to launch a limited service in Japan at the end of this year and then a nationwide service in 2002. ``This alliance represents our desire to quickly establish nationwide broadband businesses before households are wired for faster Internet access,'' Ken Kutaragi, president of SCE, told a news conference. ``We will try to provide exciting interactive services...not only games, but also something like downloading videos or doing electronic shopping.'' Analysts welcomed the move and said Sony gained strong game experts as partners, but they also warned it might take time for the companies to generate actual profits from the new structure. ``Sony joined hands with ideal partners. But it is not clear how much it would spend on the project and how it will make money,'' said Yuta Sakurai, senior analyst at Nomura Securities. SCE officials declined to disclose development cost of advanced version of PlayStation2 and other tools, and they did not say how the total cost would be shared among the partners. CELL PHONE LINKS SCE also said on Wednesday it would start selling cables to connect its PlayStation consoles to ``i-mode'' Internet-enabled phones built by Japan's top cell phone operator NTT DoCoMo Inc The cables will be priced at 3,500 yen ($30.26) each. In April, SCE will release game software titles linking i-mode phones and PlayStation consoles, it said. The cables will go on sale on March 29. The games include a new versions of existing PlayStation game software titles, which have so far notched sales of 1.2 million. The move followed an agreement last August between SCE and DoCoMo that allowed users of DoCoMo phones to view i-mode content on their TV screens via Sony's PlayStation consoles. The latest agreement follows an announcement on Tuesday by Sega and DoCoMo that they had agreed to develop a new service linking i-mode phones and Sega's video arcade game machines. Sega, the world's third largest video game maker, said last month it would pull the plug on its loss-making Dreamcast game console and create games for its rival Sony's PlayStation2 in a move to refocus on its software business. Sony shares ended 1.45 percent down at 8,150 yen, while Sega's gained 2.21 percent to 1,850 yen and Namco shed 0.05 percent to 1,959 yen. NTT DoCoMo shares closed unchanged at 2.04 million yen. The benchmark Nikkei average closed down 1.12 percent.