PlayStation
Now I want to share a preview of the world not as it is, but as it will be. Because in the future, Sony devices will achieve levels of speed, interoperability and functionality that today one can only imagine.
HOWARD: Please welcome to the stage, the President and CEO of Sony Computer Entertainment America, Kaz Hirai.
KAZ: Hi Howard.
HOWARD: Good to see you. Before we get down to the business at hand, perhaps you can tell us a little bit about how PlayStation performed during the festive season.
KAZ: Absolutely, Howard. I am pleased to report that PlayStation products once again topped consumers' gift lists for the holiday season. While we are still in the process of analyzing holiday sales results, PlayStation® 2 experienced a 10.5 percent gain year-over-year, and it was the only platform in the videogame industry with positive growth. Cumulatively, we have shipped more than 100 million PlayStation 2 units worldwide and counting, which is an industry record. The only other home console platform to achieve this milestone is the original PlayStation, but with PlayStation 2 we hit the 100 million mark in half the time. In the U.S. alone a PlayStation 2 can be found in more than one out of every three households.
HOWARD: And then there is my favorite little machine, the PSP®...
KAZ: Exactly. PSP is such a hot product we had to increase production to try to keep up with demand. Oh, and by the way, Howard, not only did PlayStation 2 outsell Microsoft's new Xbox 360 this holiday season, but so did the PSP.
All in all, 2005 was a great year for PlayStation. And the future looks even brighter.
HOWARD: As we are here talking about how Sony is strategically positioned to entertain the future with breakthrough products and compelling content, what about the next generation of games?
KAZ: At Sony Computer Entertainment, we know that the next generation of interactive entertainment doesn't really start until we launch it, and in 2006 we are ready to introduce the future with PLAYSTATION 3.
HOWARD: Yes, let's talk about why PLAYSTATION 3 is worth waiting for...
KAZ: PLAYSTATION 3 will be the third home console platform we introduce into the market. And once again it is destined for great success and, of course, a very long lifecycle.
At the heart of PLAYSTATION 3 is the Cell processor. Along with our partners IBM and Toshiba we have invested billions of dollars and hundreds of thousands of man-hours in creating the Cell processor. It is so powerful that it rivals super computers, but is uniquely designed to really support broadband-based consumer applications and HD video streams. Cell is actually eight processors on a single chip, seven of which will be active for the PLAYSTATION 3.
HOWARD: And, of course, speaking of the Cell processor, with all its enormous power, flexibility and potential, the application is not going to be limited to empowering just PLAYSTATION 3, correct?
KAZ: That's correct. And as a matter of fact, in order to harness the huge potential of Cell processor, Sony has established an organization that is specifically tasked with developing Cell-based products other than PLAYSTATION 3 and also applications in that field, as well.
HOWARD: Okay then, Kaz. Let's cut to the chase. What about content for the PLAYSTATION 3?
KAZ: The introduction of any new platform bearing the PlayStation name has been synonymous with presenting revolutionary ways in which creators create and consumers enjoy content. PLAYSTATION 3 is no exception. In addition to the Cell processor, we have adopted Blu-ray as our storage medium.
Another first brought by PlayStation is back-catalog compatibility. When we first introduced PlayStation 2 in 2000 it supported many formats: PlayStation games, PlayStation 2 games, audio CDs and, of course, DVD video playback. But with PLAYSTATION 3, we are taking this to the next level. Not only will PLAYSTATION 3 support Blu-ray video and PLAYSTATION 3 games but, of course, all of the other formats I just mentioned. With PLAYSTATION 3, users can access tens of thousands of assets right out of the box, not to mention digitally distributed content. We respect and appreciate the investment that our customers have made and will continue to make in in-home entertainment, which in some cases can add up to hundreds, perhaps even thousands, of dollars. Only consumer-centric companies like Sony, one with such a long history in consumer electronics and also entertainment, can deliver a forward-thinking product like PLAYSTATION 3.
HOWARD: From the looks of things, Kaz, PLAYSTATION 3 will be certainly the most powerful computer entertainment system ever to hit the market.
KAZ: Absolutely, Howard. But as we all know, hardware alone cannot provide entertainment without compelling content. And in the gaming world, killer applications, titles that give consumers new, exciting experiences never before encountered, drive market penetration of hardware in the market. The game development community worldwide has been hard at work creating new experiences that will really exceed consumer expectations. In fact, we have already distributed more than four thousand PLAYSTATION 3 development kits to partners around the globe. We would like to share with you a brief visual taste of the fruits of their labor.
HOWARD: Let's take a look. If that doesn't tease you all, nothing will. PLAYSTATION 3 is one of the key pillars of Sony's growth strategy for 2006 and beyond, and now all of this just reconfirms why everyone is so excited about this product. Not just for Sony and its partners, but for consumers around the world. Thank you, Kaz. Go get `em.
KAZ: Thank you, Howard.
HOWARD: In our time together here this morning, you have seen the world through Sony's eyes. It's a vision that combines content and technology to create a vibrant tapestry of the future. Indeed, everywhere you see Sony - in High Definition, Digital Cinema, Personal Entertainment, PlayStation - you see the benefits of the marriage of compelling content with innovative technology.
2005 could have been called the year of the digital citizen, a citizen armed to the teeth with broadband gadgets that record, store and share content, sometimes legally, sometimes illegally. The power of PS3's cell chip will expand these opportunities beyond current imagination. In the coming years, the digital citizen is poised to become a creator, an artist, perhaps as gifted as those you have already seen on stage today. Then we'll experience another kind of convergence, as our newly empowered digital citizenry all over the globe will in turn have to grapple with the same sticky questions such as who owns what, and who has the right to share content. These are questions that none of us can afford to duck. Content and technology are strange bedfellows. We are joined together. Sometimes we misunderstand each other. But isn't that after all the definition of marriage?
At Sony, we are united in our commitment to creating the very best consumer experience with dazzling and groundbreaking products. This is who and what we are.
Thank you all very much for your attention.