PlayStation 3 competes with Microsoft's Xbox 360 and Nintendo's Wii in console sales

The PlayStation Network was launched in 2006 to allow PlayStation 3 users to play games online free of charge with one another.  About 40% of the users are in the U.S. while 10% are in Japan.PlayStation 3 competes with Microsoft's Xbox 360 and Nintendo's Wii in console sales.

Customers will be able to purchase and download games and video content from the PlayStation Store on PS3 or PSP.  In addition, consumers will have full access to Music Unlimited powered by Qriocity through PS3, PSP, VAIO and other PC's.  Service restoration of Video on Demand powered by Qriocity and Music Unlimited powered by Qriocity for a variety of network-enabled Sony devices will be announced later.

"We have been conducting additional testing and further security verification of our commerce functions in order to bring the PlayStation Network completely back online so that our fans can again enjoy the first class entertainment experience they have come to love," said Kazuo Hirai, Executive Deputy President, Sony Corporation. "We appreciate the patience and support shown during this time."

The company will be offering customers a "Welcome Back" package of services and premium content to all registered PlayStation Network and Qriocity account services.  The details of this program will continue to be detailed regionally.
Sony said it has made arrangements with Debix to offer the AllClear ID PLUS identity theft protection program to PlayStation Network and Qriocity customers who are concerned about identity theft following the criminal cyber attack on the network.  AllClear ID PLUS is a premium identity protection service that uses advanced technology to deliver alerts to help protect you from identity theft.  The service also provides identity theft insurance coverage and hands-on help from expert fraud investigators.  Sony has arranged, at no charge to eligible PlayStation Network and Qriocity account holders, for twelve months of this service to be provided by Debix to those who choose to enroll.

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$170 million lost due to hack

Sony Corp. said early this month that it expects the costs arising from the online security breach to hurt operating profit by about 14 billion yen (US$170 million) in the fiscal year ended March 31, 2012.  The $170 million charge is well below the $1 billion estimate by some analysts.

Sony still reported a third straight year of red ink.  Sony said May 26 that it incurred a $3.2 billion net loss for fiscal year ended March 31, 2011, due to a write-off on a certain portion of deferred tax assets in Japan due to the March 11 earthquake and tsunami.
Sony said that currently known associated costs for the fiscal year ending March 2012 on account of the security breach are estimated to be approximately 14 billion yen on the consolidated operating income level.

The estimated amount includes, among other things, current estimated cost of the personal information theft protection program for customers; costs of welcome back programs that offer our customers certain services (such as games, music and videos) for free; customer support costs; network security enhancement costs; legal and expert costs; and the impact on profits due to a possible future revenue decrease.

"These amounts are our reasonable assumption based on the information currently available to Sony.  So far, we have not received any confirmed reports of customer identity theft issues, nor confirmed any misuse of credit cards from the cyber-attack. Those are key variables, and if that changes, the costs could change," Sony said.

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What is the future of Internet by wholesale electronics news

Forrester chairman and CEO George Colony came storming out of the gate here at the second day of the 2011 Forrester IT Forum, trumpeting the benefits of an “App Internet” world that leaves the PC and cloud computing models IT professionals have come to know in the dust.
Placing the “PC” model (focused on a central group of local servers) in contrast with a web-based cloud model (focused on distributed web-based computing), Colony said the App Internet model — in which powerful local devices run applications — will dominate the future architecture of the Internet.
True, the hardware-based “center” of the network is becoming more powerful, driven by Moore’s Law. But the periphery of network is also becoming powerful, Colony said — leveraging the extraordinary storage and processing power in both places.
“The old PC model is a dead one — it doesn’t leverage cloud assets,” he said. “The web is a dead technology [model]. It is not the future software architecture of the Internet.”
Take Apple, for example. The company — which posts 85 percent revenue growth per year, and 92 percent profit growth — is “lucky” to have stumbled into the App Internet architecture.
“At first [with the iPhone] they were resistant,” Colony said. “It took months to get Apple to build App Internet architecture for billing and advertising.”
Now, Apple’s an “early winner” in the App Internet. Compare that withGoogle, a company with “high web ideology” that gives it considerable risk for a vendor, he said.
“Google makes 97% of its revenue from web ads,” he said. “It would be like it’s 1984, and Microsoft is competing with Apple — but Microsoft is giving its operating system away for free.”
“Who’s having the steak dinner while [everyone else peers] in the window? Apple,” he said.
But the future is now, Colony said. The App Internet market is already a $2.2 billion business this year worldwide, growing at 8.5 percent compound annual growth rate.
But what about Dell or Hewlett-Packard? With an app store expected on every device, can they reform the PC to fit into the App Internet?
And what of SAP and Oracle? “These guys can pretty quickly get traction in App Internet,” Colony said. “The question is pricing.”
And Microsoft? “Microsoft gets it, to an extent,” he said. “Silverlight could be a fantastic development platform for App Internet.”

And Facebook? “Any company that’s highly web-centric is in trouble. Facebook is very ideological about the web. You’re going to see a social player come in and use App Internet and give them a lot of trouble.”
“If you look at the App Internet, you’re going to see two or three players we’ve never heard of [that dominate].”
But the future is not yet written.
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Microsoft is rushing to adapt Windows to better support devices that can compete with Apple

Microsoft will preview its Windows operating system designed for tablet computers in demonstrations planned for next week, according to three people with knowledge of the company’s plans.

The company will showcase the software’s touch-screen interface running on hardware with an Nvidia Corp. (NVDA) Tegra chip, said the people, who declined to be identified because the plans are confidential. Windows President Steven Sinofsky is scheduled to present at the All Things D conference, while Vice President Steve Guggenheimer will address the Computex show in Taipei.
Microsoft is rushing to adapt Windows to better support devices that can compete with Apple Inc. (AAPL)’s iPad, which dominates the tablet market. The new operating system won’t be out until next year, people familiar with the plans said in March. Still, the company is eager to show it is moving forward, seeking to generate demand among computer makers and chip suppliers.
Nvidia’s Tegra microprocessor is based on the ARM Holdings Plc (ARM) technology that dominates the smartphone market. ARM-based chips are also used in the iPad and tablets that run Google Inc. (GOOG)’s Android operating system.
Mark Martin, a spokesman for Microsoft, declined to comment. The company’s shares rose 48 cents, or 2 percent, to $24.67 at 4 p.m. New York time on the Nasdaq Stock Market. Nvidia gained 46 cents, or 2.5 percent, to $18.82.
Microsoft Chief Executive Officer Steve Ballmer said earlier this week that machines with the new operating system, which he referred to as Windows 8, would be released in 2012.

‘In a Race’

Microsoft, based in Redmond, Washington, later retracted the comments, claiming they were a misstatement. The company is scrambling to expand Windows to computing devices such as phones and tablets, Ballmer said in a speech in New Delhi today.

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“We are in a race,” he said. “We are not doing that badly, frankly. We are doing pretty well in that race. But the race is on to continue to push Windows to a variety of new form factors.”
Apple sold 4.69 million iPads in the most recent quarter, for a total of 19.5 million since the device’s April 2010 release. If the next version of Windows does come out on tablets in 2012, Apple will likely be selling its third generation of iPad hardware by then, according to Michael Gartenberg, an analyst at researcher Gartner Inc.
While Microsoft works on the new Windows software, sales in the operating-system business are taking a hit as some consumers choose iPads instead of less-expensive netbook computers that run Windows.
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