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Blu-ray PS3 to bow for $499, $599

E3 UPDATE: But cheaper version may not play full high-def resolution

By Jennifer Netherby -- Video Business, 5/8/2006

MAY 9 | CULVER CITY, Calif.—Sony will release the PlayStation 3 in two versions on Nov. 17 in the U.S. with prices starting at $499, the company said Monday at a pre-Electronic Entertainment Expo event on the Sony Pictures Entertainment backlot.

Both PS3 versions will include Blu-ray high-definition drives and hard drives to allow users to download and save games.

A 20GB version is priced at $499 and a 60GB at $599. This puts Blu-ray players on the market priced closely to Toshiba’s initial HD DVD players, which start at $499.

In comparison, stand-alone Blu-ray DVD players launching this summer from Samsung, Pioneer and Sony will start around $1,000.

However, the 20GB PS3 does not include an HDMI connection, which could limit its effectiveness as a Blu-ray movie playback device.

As part of the AACS copy-protection system adopted for high-def discs, studios are entitled to require that players down-convert high-def movies to a lower resolution standard unless the video is sent over protected digital connections such as HDMI.

Without such a connector, users of the $499 PS3 would have access only to the down-converted signal if a studio chooses to invoke the option.

To be assured full Blu-ray functionality, users will have to buy the $599, 60GB version of PS3.

Sony is pushing the PS3 as a home entertainment hub for the living room, with its ability to play and download games, movies and music.

“This is meant to be a companion device in the living room,” said Kaz Hirai, Sony Computer Entertainment president and CEO.

Sony plans to ship 2 million units worldwide at launch, with an additional 2 million by Dec. 31, almost guaranteeing shortages at retail and mirroring Xbox 360’s debut last November.

Sony will ship an additional 2 million units in the first quarter of 2007.

The company will debut PS3 consoles in Europe on the same day as the U.S. launch, but Japan will get the players a week earlier, on Nov. 11.

Sony spent much of the nearly two-hour press conference showing off PS3 games in development, including Gran Turismo HD, basically a high-def version of bestseller Gran Turismo 4. Other PS3 games include Final Fantasy XIII and Metal Gear Solid 4.

Electronic Arts demonstrated Tiger Woods PGA Tour 2007 and NBA Live 2007, both of which allow a full range of on-screen player movement and which will debut around the PS3 launch.

Sony also touted its online access, with the company calling it a new distribution channel for games, movies and music, which users can download to the PS3 hard drive. Sony showed the startup community screen for the PS3, which includes a shopping element, allowing gamers to download games and accessories.

For the Sing Star karaoke game, users will be able to go online to download songs and videos to sing along to and create a profile page to connect with other Sing Star players. The company didn’t show pricing for the music downloads.

Sony is introducing a pre-paid PlayStation card that can be used for online purchases. The company will offer online access for free with features such as video chat, account manager, voice and text messaging and friends lists. Sony said 3 million PlayStation 2 users are now online.

Another new feature will be sensored controllers that will move the character in the game with the gamer’s movements. The controllers themselves, however, will use the same design as PS2 controllers.

The PS3 will be able to interact with the PlayStation Portable, so that users can use both devices to play a game.

Sony said it has shipped 17 million PSPs worldwide and 6.4 million in the U.S. since its launch. Although studios have backed off from releasing movies on the PSP’s UMD format due to poor sales (VB, 2-20), Sony said 60 movie and video titles have been released in North America, with 18 million units sold.

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