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Sony postpones launch of PlayStation3 `Home' service

A model displays the new racing software for Sony Computer Entertainment's video game Gran Turismo 5 at the Tokyo Game Show 2007 in Chiba, Japan, yesterday. Some 200 hard and software video game makers exhibit at the Asia's largest trade show. PHOTO: AFP

In yet another embarrassing delay for Sony, the company is putting off the start of its "Home" virtual world services for the PlayStation 3 (PS3), initially planned for later this year, until next spring.

The announcement yesterday came from Kazuo Hirai in his first major public appearance as the new chief executive of Sony Corp's video game business, Sony Computer Entertainment.

"We wanted to wait until we could offer what would be totally satisfying for consumers," Hirai said in a keynote speech at the Tokyo Game Show, an annual event where game machines and new software are shown.

"Home" is a real-time interactive online world much like Linden Lab's "Second Life" and other so-called "metaverse," except it's designed for PS3, Sony's newest home console.

Millions of people now enter "Second Life" on their PCs, moving avatars, or computer graphics images of themselves, in a virtual universe.

Major companies are also setting up shop in "Second Life," and analysts see great potential for such virtual worlds as a communication tool and real-life business.

PlayStation woes: * The launch of "Home" has been delayed until spring. * Only 5 million units of PS3 have been sold, compared with11.6 million units of Microsoft's Xbox 360 and 9.3 million of Nintendo's Wii. * European launch of PS3 was delayed for several months because of production problems.

Sony officials have shown the demonstration video of "Home" with much fanfare on various occasions, promising new kinds of businesses, such as advertising and electronic shopping, as well as games.

The product's delay is the latest trouble Sony has had with the PS3, whose European launch had to be postponed for several months due to production problems.

Hirai, named last November as president, replacing Ken Kutaragi, the "father of the PlayStation," sounded apologetic in several places during his speech, acknowledging that the PS3 had failed to live up to the firm's sales targets.

He promised to listen more to complaints and suggestions from game software creators and game fans to improve the PS3 business.

"The results we have produced so far have been unfortunate," he said at Makuhari Messe hall of the more than 5 million global sales for PS3, which went on sale late last year in Japan and the US and in March in Europe.

Sony once dominated the gaming industry with PlayStation 2, predecessor for the PS3, but now faces intense competition from Microsoft Corp, which has sold 11.6 million Xbox 360 machines in the last two years, and from Nintendo Co's popular Wii, which has sold 9.3 million units since late last year.

Hirai showed a new remote controller for PS3, "Dualshock 3," that will vibrate along with games such as the shock of impact of a sword hitting an object or a race car swerving. Old games will require download upgrades.

The controller goes on sale in November in Japan and next spring in the US and Europe, he said.

Hirai said the core strategy would be to position the PS3 as a game machine and a way to view next-generation Blu-ray disc video.

"We must get back to the basics," Hirai said.

Hirai, who formerly headed Sony Corp's North American gaming business, has fueled some expectations about a new strategy at the electronics maker.

The departure of Kutaragi, an icon among gamers, marked the end of an era at Sony when it dominated the video game industry with its flagship PlayStation.

Hirai became president last December and chief executive in June. Kutaragi remains honorary chairman at Sony's gaming unit.
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