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To: JOHN E CANTILLO who wrote (39097)	3/2/1999 11:32:00 AM
From: JEFF K	Respond to of 50808

LSI to Supply Chip for Sony's New PlayStation Game Console Milpitas, California, March 2 (Bloomberg) -- LSI Logic Corp., a maker of specialty semiconductors, said Sony Corp.'s new PlayStation video game console will include one of its chips for uses such as playing over the Internet. Sony, the No. 2 consumer-electronics company, is expected to announce today details of the new PlayStation, which is to hit store shelves next year. The company needs to trump the performance of newer game systems by rivals Nintendo Co. and Sega Enterprises Inc. to expand and defend it 60 percent share of a global market worth $15 billion. Milpitas, California-based LSI is counting on Sony's popularity to continue to boost its profits. LSI and Sony first began working on a special chip for the first PlayStation in 1993, which became the best-selling home video game since its release in 1994, selling more than 50 million units. ''People were suggesting that we weren't involved in the next Sony machine, and this gets rid of the uncertainty which has been floating around,'' Wilfred Corrigan, founder, chairman and chief executive, said in an interview. Sony is LSI's largest customer and accounted for about $178 million, or 12 percent, of its $1.49 billion in 1998 revenue. LSI makes so-called system-on-a-chip devices that place many functions on a single semiconductor. That lowers the manufacturing cost and space needed, while offering faster data transfer. LSI's new chip for the next Sony PlayStation allows the gaming console to exchange data with so-called Internet appliances such as TV set-top boxes, VCRs, digital cameras, printers, joysticks, keyboards and mice. The chip has about 1.5 million transistors. The new PlayStation will support Digital Video Disk technology for high-resolution graphics, movies and music. LSI also provides the key chip in Sony's DVD players. The new PlayStation will sport three chips: LSI's, one made by Toshiba Corp. and one made by Tokyo-based Sony, Corrigan said. Corrigan said LSI will continue to make chips for the older PlayStation. ''We really think both machines will run in parallel, with each aimed at two different markets and age groups,'' he said. LSI fell 5/8 to 25 1/4 yesterday. 00:16:26 03/02/1999