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Of course, it has taken a while for the PS3 to actually get here, with Microsoft pipping Sony to the post in being first with high definition console gaming, an actual next-gen console launch and units on sale, and in the crucial new arena of downloadable video content in the form of standard and high definition TV shows and movies, but after March 23 when the PS3 arrives, the opening phase of the digital revolution will be over, with the next phase to unfold in ways we haven’t even yet begun to imagine.

But first we need to get back to reality, and what is happening in the short term. And for some guidance on what to expect in the world of PS3, one person with answers is Phil Harrison, the President of Worldwide Studios, Sony Computer Entertainment.

He spoke to 1Up.com and said that “I think it's incredibly important that we establish what PlayStation 3 stands for. And I think PlayStation 3 needs to stand for gaming and digital entertainment in the living room pushing the envelope of high definition, pushing the envelope of broadband, and of course that includes more than just games. We don't have the announcements that you're probably looking for today, but it is digital data.”

He then went on to point out that “We have a hard drive, we have a commerce engine, it doesn't take a rocket scientist to figure out we will have that on the network very shortly.”

In that case it doesn’t seem like it will be long before we get an announcement that we are looking for, which will include a movie, TV show, music and other digital content download service for the PS3, so that we know at least one of the things Sony stands for with the PS3 by being able to use it to purchase and download from a vast library of content that people want to access.

All of this is happening at the same time that Microsoft would appear to be thinking about Xbox 360 price cuts, suspiciously on the eve of the ‘rest-of-the-world’ PS3 launch, and well after the profitable Christmas/holiday season.

We noted in a previous article that the Seattle Times had interviewed Steve Ballmer who had some very interesting things to say about cutting prices, where he said that “I think every console in the world has had a price decrease sometime in the first few years. I don't know whether we'll have a price decrease in the first few years, and I don't want to comment on that, but I will highlight for you that every console has had a price decrease in the first few years.”
As for Sony, they already dropped the price of the 20Gb PS3 in Japan before launch, but with demand expected to rise for PS3’s once more following the March 23 launch in the rest of the world, there’s no reason Sony needs to drop prices for the next few months. If Sony does drop prices, they might do it in time for the 2007 Christmas/holiday season. And if they don’t do it then, the second quarter of 2008 might well be a good time.

Until then, Sony will want to make as much money from the PS3 as possible – while still raking it in from PS2 sales which are set to outsell the PS3 in 2007 and 2008. Given that Sony is reported to be losing money on each PS3 sold, getting online stores on digital content up and running to sell as much digital content as possible is a number 1 priority – with Microsoft already leading the race.

The fight for control over the digital lounge room has barely begun, with Sony and Microsoft only two of the many, many competitors wanting to dominate this area. Pull up a comfy chair – it’s going to be quite a show!
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Alex Zaharov-Reutt  Consoles  Games  IPTV  Microsoft  Music  Video  Xbox