AOL becomes a PS2 player

By John Gaudiosi -- Video Business, 5/15/2001

MAY 15 | On the eve of E3, Sony Computer Entertainment and America Online have unveiled a strategic alliance that will bring AOL features such as instant messaging, chat and e-mail to PlayStation 2 consumers as early as next year.

The Internet giant, which has more than 29 million users worldwide, and Sony will also explore other interactive entertainment opportunities, including broadband technologies and the development of a Netscape browser (AOL owns Netscape) to optimize PS2's Internet experience. Sony will also incorporate the AOL features in its PS2 Software Development Kits for developers to make use of the technology in online games.

Financial details of the deal were not disclosed in Tuesday's announcement.

"Given our shared corporate vision and power for the evolution of online computer entertainment, AOL and SCEI make ideal partners," said Ken Kutaragi, president and CEO of Sony Computer Entertainment Inc. "With AOL by our side, Sony Computer Entertainment will begin to provide the world's content creators access to a new community for digital entertainment and distribution. Just as PlayStation 2 ushered in a new era of computer entertainment, we are now escalating the evolution of great gaming experiences into what will become a highly interactive, real-time broadband network environment."

Sony also announced that it would ship a modem, hard disk drive, 15-inch monitor, keyboard and mouse for PS2 by the end of the year. While third-party companies shipped PS2 keyboard and mouse peripherals last year, the modem will be the key to Sony's online gaming. Retail pricing for these peripherals was not disclosed.

Unlike Microsoft's Xbox, which will ship with a 10GB HDD when it bows this fall, Sony consumers will need to purchase a separate hard disk drive. The HDD is expected to play a major role in online gaming.

Since console peripherals historically haven't penetrated more than 20% of the user base, including Sony's four-player MultiTap for the original PlayStation, sources told VB that a modem may ship with a popular first-party online game. (This distribution method could also be implemented by third-party publishers and third-party modem providers.)

Sony is expected to outline more of its online gaming plans on Wednesday during its pre-E3 news conference in Los Angeles. Demonstrations of the AOL PS2 technology will be on display throughout the May 17-19 industry trade show.

The Sony/AOL partnership is designed to help PS2 compete with Microsoft's Xbox online plans. Microsoft has been delivering online gaming for years through MSN's TheZone.com.

"Sony Computer Entertainment and AOL are both committed to delivering the most compelling interactive content and applications possible for consumers," said Barry Schuler, chairman and CEO of AOL. "By combining AOL's industry-leading infrastructure and trademark convenience with the media-rich power of PlayStation 2 to turbo-charge the gaming experience, we'll be able to provide our members with another exciting way to connect by extending our 'AOL Anywhere' strategy to a powerful new interactive platform."

Electronic Arts, which previously signed a reported $80 million five-year deal with AOL, will continue to be the games channel partner across AOL brands through gaming portal www.ea.com.

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