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------------------------------------------------------------Sony has taken its next strategic step in the video game market, saying it will launch online services for its market-leading PlayStation 2 game console in August. Sony said it will sell a network adapter for $93 beginning that month, allowing for both low- and high-speed Internet connections. The PS2 does not have built-in network capabilities but does have high-speed expansion ports designed for such a purpose.
Analysts had expected Sony to launch the online service, a long-time goal for the company since the PS2 was unveiled in November 2000. Sony said it will begin testing the system with a group of about 1,000 players this month.
But at least one analyst was skeptical about the online offering's prospects.
"Peripherals and add-ons do not do well in this industry," said Mike Wallace, an analyst at UBS Warburg.
"No one's going to spend a lot of money (on this); first of all because it's not apparent how any of the third parties are going to make any money on this, and second of all, there's no installed base," he said.
Wallace was referring to the major third-party video game publishers, like Electronic Arts and Activision, both of which have experience in developing online games for consoles and the PC.
As opposed to other current online gaming offerings, the Sony system will not be pay-for-play; users will pay only the initial cost of the game, plus standard charges by Internet service providers (ISPs).
Game slate not developed yet
Sony spokeswoman Molly Smith said the slate of launch titles for the network adapter has not yet been fully developed, but that at least one title would be the company's own "SOCOM," a game centred around Navy Seals.
She also said participants in the test program would test games including "Frequency" and "Twisted Metal Online" over the next few weeks, though they have not definitively been chosen as launch titles yet.
The adapter will have ports for both a dial-up modem and a broadband connection. It will attach to the back of the console over its main expansion bay via two screws which will come with the unit.
Microsoft launched its Xbox console in November with a built-in Ethernet port and the software giant has said it would begin to roll out online services this year.
"The only one that's going to do anything with online in this cycle is Microsoft," Wallace said, speculating that the Xbox would have an advantage due to its built-in networking.
The adapter bundle will come with a start-up disk pre-configured for a number of major ISPs, including EarthLink and SBC Communications, though Sony said any ISP can be used with the service.
Sony said its entire group of ISP partners reaches a total of 11 million users nationwide.
The only console online gaming service currently offered in the United States is one for Sega's now-discontinued Dreamcast console. The Dreamcast had a dial-up modem built in; a broadband adapter released later was largely unsuccessful.
With Sony's announcement, the only major console in the US market without any online options is Nintendo's GameCube. The GameCube, released in November, has no built-in access ports, and Nintendo has said little about its online plans.
Phase two services yet to come
While Sony's announcement centred solely around online gaming, the company hinted at the network adapter's potential in a statement.
"Use of the (adapter) allows consumers simultaneous access and connection to multiple devices in the home through (PS2)," it said.
Smith said that while nothing is definite yet, the adapter will eventually allow people to, for example, stream MP3 music files from their computer through the PS2 while simultaneously connected to an online game.
She described the roll-out of such services as a two-step process.
"Phase Two is kind of going to be a realization of what our overall vision is," she said. "It's more of an e-distribution kind of system."
While the second phase is not expected this year, Smith said more details about its launch plans and components would be announced over the next few months.
It also flies in the face of the $40 price which Sony have talked about for many months now.
> I will just plug in my modem ah bliss
what, take it out of your PC?
will you be able to dial up with the connection used on your home computers?
------------------------------------------------------------Sony has taken its next strategic step in the video game market, saying it will launch online services for its market-leading PlayStation 2 game console in August. Sony said it will sell a network adapter for $93 beginning that month, allowing for both low- and high-speed Internet connections. The PS2 does not have built-in network capabilities but does have high-speed expansion ports designed for such a purpose.
Analysts had expected Sony to launch the online service, a long-time goal for the company since the PS2 was unveiled in November 2000. Sony said it will begin testing the system with a group of about 1,000 players this month.
But at least one analyst was skeptical about the online offering's prospects.
"Peripherals and add-ons do not do well in this industry," said Mike Wallace, an analyst at UBS Warburg.
"No one's going to spend a lot of money (on this); first of all because it's not apparent how any of the third parties are going to make any money on this, and second of all, there's no installed base," he said.
Wallace was referring to the major third-party video game publishers, like Electronic Arts and Activision, both of which have experience in developing online games for consoles and the PC.
As opposed to other current online gaming offerings, the Sony system will not be pay-for-play; users will pay only the initial cost of the game, plus standard charges by Internet service providers (ISPs).
Game slate not developed yet
Sony spokeswoman Molly Smith said the slate of launch titles for the network adapter has not yet been fully developed, but that at least one title would be the company's own "SOCOM," a game centred around Navy Seals.
She also said participants in the test program would test games including "Frequency" and "Twisted Metal Online" over the next few weeks, though they have not definitively been chosen as launch titles yet.
The adapter will have ports for both a dial-up modem and a broadband connection. It will attach to the back of the console over its main expansion bay via two screws which will come with the unit.
Microsoft launched its Xbox console in November with a built-in Ethernet port and the software giant has said it would begin to roll out online services this year.
"The only one that's going to do anything with online in this cycle is Microsoft," Wallace said, speculating that the Xbox would have an advantage due to its built-in networking.
The adapter bundle will come with a start-up disk pre-configured for a number of major ISPs, including EarthLink and SBC Communications, though Sony said any ISP can be used with the service.
Sony said its entire group of ISP partners reaches a total of 11 million users nationwide.
The only console online gaming service currently offered in the United States is one for Sega's now-discontinued Dreamcast console. The Dreamcast had a dial-up modem built in; a broadband adapter released later was largely unsuccessful.
With Sony's announcement, the only major console in the US market without any online options is Nintendo's GameCube. The GameCube, released in November, has no built-in access ports, and Nintendo has said little about its online plans.
Phase two services yet to come
While Sony's announcement centred solely around online gaming, the company hinted at the network adapter's potential in a statement.
"Use of the (adapter) allows consumers simultaneous access and connection to multiple devices in the home through (PS2)," it said.
Smith said that while nothing is definite yet, the adapter will eventually allow people to, for example, stream MP3 music files from their computer through the PS2 while simultaneously connected to an online game.
She described the roll-out of such services as a two-step process.
"Phase Two is kind of going to be a realization of what our overall vision is," she said. "It's more of an e-distribution kind of system."
While the second phase is not expected this year, Smith said more details about its launch plans and components would be announced over the next few months.