Sony is making all potentioal PS3 buyers choice easier by discontinuing the 20GB and 60GB PlayStation 3 SKUs from the Japan market, leaving only the new 40GB slimmed down version. Sony's game unit said it would end shipments of PlayStation 3s with 20- and 60-gigabyte hard disk drives by the end of this month. Sony is pinning its hopes on the cheaper PS3 with a 40GB HDD that was introduced in Japan in November last year. Unlike the two original versions, which were launched in November 2006, the newest PS3 model lacks PlayStation 2 support, has two high-speed USB ports instead of four and has no super audio CD system. The company will "vigorously promote the expansion of the PS3 platform by further concentrating on the 40GB hard disk drive model," Sony Computer Entertainment said in a statement. The move comes as rival Nintendo continues to enjoy strong demand for the Wii, known for its motion-sensitive controller, outselling the PS3 three-fold in its domestic market last year.

It looks like Sony has truly admitted defeat with UMD movies following plans to allow the PS3 to transfer Blu-ray movies onto PSP memory sticks. Rather than re-encoding the HD content for the PSP's resolution, Sony plans to have Blu-ray disks which feature a PSP-specific version of the movie on the same disk as the main feature, allowing the PSP to simply copy it from the disk directly to the memory stick. The one downside of this would be that Blu-ray films which have already been sold will probably not be compatible with this feature. President of Sony Pictures Home Entertainment, David Bishop, said:

This way, you can have a portable copy you can take with you. There was always the promise of greater interactivity. You'll see that coming in the new year.

It's been no secret that Sony has been losing money on each PS3 it sells, but the firm has now revealed that it is hoping to be making a profit from PS3 sales within the next fiscal year. Sony Computer Entertainment's chief executive, Kaz Hirai, said:

We want to get to the positive side of the equation as quickly as possible. The next fiscal year starts in April and if we can try to achieve that in the next fiscal year that would be a great thing. We are going through the budgets right now. That (profitability) is not a definite commitment, but that is what I would like to try to shoot for.

Hirai is hoping that lower production costs due to fewer components in the 40GB model will be the main factor in helping the console achieve profitability. The PS3 managed to sell 1.2 million units in North America over the Christmas period, which accounted for about 40% of total yearly sales.

Sony has introduced its first sub-$200 internal BD-ROM drive, the BDU-X10S drive that can upgrade an existing desktop computer into a high-definition Blu-ray Disc player, as well as a DVD and a CD player. This is purely a read-only device, without any Blu-ray, CD or DVD burning functions. The new BDU-X10S BD-ROM drive comes with CyberLink's PowerDVD BD Edition software for playback of commercial movie titles, recorded Blu-ray Disc home videos, DVD-ROMs and CD-ROMs. It features a Serial ATA (SATA) interface and standard 5.25-inch form-factor for easy installation inside desktop PCs running the Microsoft Windows Vista or Windows XP operating system. The new BD-ROM drive will start shipping this month.

Earlier this week, Sony's Consumer Electronics Show site slipped news that Skype VoIP functionality for the PlayStation Portable (PSP) will soon be added. Japan's Nikkei Net news service is reporting today that Skype functionality will be added to the PSP as early as this month. Skype's Internet phone technology will be limited to owners of the PSP Slim only. Those who own the redesigned handheld will be able to download Skype software directly onto their PSPs and then use a specially designed microphone to communicate. The Skype service will be free for PSP-to-PSP and PSP-to-PC calls. PSP Slim owners will also be able to sign up for a dedicated phone number, which Nikkei is reporting will run for 2,250 yen (about $20.70) for three months of usage. Expect more information on the service next week during the 2008 Consumer Electronics Show in Las Vegas.

Skype, a program that allows you to talk to people for free via the internet, is headed for the PSP, Sony has revealed.

Call friends, talk trash to fellow gamers or catch up with acquaintances via Skype for PSP system,

Sony states on its official site for the upcoming CES show. Expect more detailed information soon after the CES 2008 grand opening next Monday.

Sony has planned a major revival for their sexy Vaio notebooks in the month of January or February. According to Notebook Italia, the firm is all set to upgrade FZ, SZ, CR, and AR Series with the latest 45nm Intel Penryn processors. All of them are Santa Rosa machines with decent specifications. The CR31S / D ($1763) is a 14.1-inch notebook with Intel Core 2 Duo T8100 (2.1GHz), 2GB DDR2 memory, Intel Graphics Media Accelerator (GMA) X3100, 160GB SATA hard drive, dual layer DVD writer, 802.11a/b/g wireless, Bluetooth, webcam, and Vista Home Premium. The 13.3-inch VAIO SZ71XN / C ($2,497) and 15.4-inch FZ38M ($1,467) are similarly specced except for the NVIDIA GeForce 8400M GS video and 200GB hard drive. The FZ31Z (2,497) is a high end sibling of FZ38M with Intel Core 2 Duo T8300 (2.4GHz), 4GB RAM, NVIDIA GeForce 8600M GT 256MB memory, 300GB storage, and a Blu-Ray multi drive. The 17-inch AR61ZU ($3,526) is a desktop replacement with the same FZ38M specs, but comes with a 500GB hard drive.

Sony is touting a new 3.5-inch multi-touch LCD capable of displaying 16.77 million colors, that uses optical sensing technology. The 640x480 screen is made of what Sony's calling "low-temperature polysilicon thin-film transistor" tech, and it supports recognition of up to five fingers at a time, as well as pen input. Of course, there's no word on when we might see actual products utilizing the screen.

Sony and Capcom are teaming up for the release of Devil May Cry 4 by announcing two limited edition PlayStation 3 bundles for Japan. Available in both black and ceramic white, the 40GB PlayStation 3 will come with a copy of the game and extra content on a separate Blu-ray disc. The bundle will retail for JPY 47,800 ($422) when it's released on January 21.

Sony has updated the Folding@Home client for the PS3 to version 1.3. The improvements offered by this version are the ability to play music from the hard drive whilst folding and the option to turn-off the console after a specified amount of time or after the current work unit has been completed. Sony has also tweaked the code a little to allow it to handle more complex protein simulations. Version 1.3 requires you to install the recently released 2.10 firmware on your PS3.

If you are unfamiliar with the Folding@Home project, it is run by Stanford University and simulates protein folding in an attempt to find cures for diseases and illnesses including Alzheimer's, BSE, CJD, ALS, Huntington's, Parkinson's disease and a number of cancers. You do not need a PS3 to participate in the project; any computer connected to the internet is capable of running a Folding@Home client. For more information you may wish to look at the Folding@Home website and techPowerUp!'s Folding@Home team.

It looks like Sony is being quite optimistic about its PS3 sales up until the end of next March, saying that it expects to have sold 11 million PS3s by 31st March next year - and that's sales to end users, not just shipments to retailers. Jack Tretton, who is the chief executive of Sony Computer Entertainment America said:

We expect to sell 33 million pieces of hardware across the three platforms. And that breaks out to 12 million PS2s, 11 million PS3s, and 10 million PlayStation Portables, and then we don't break out software, but our forecast is 250 million units of software across those three platforms.

Sony had sold 7.47 million PS3s worldwide by the end of November, so that works out at needing to sell almost 900,000 units a month until the end of March. Given that it sold less than 500,000 PS3 consoles during November, and that was largely helped by Black Friday and the holiday season, Sony must be banking on incredible sales during December in order to reach this projection.

Firmware Update v2.10 for Sony PLAYSTATION 3 (PS3) is now live. This new system update enhances media playback on the PLAYSTATION 3 by introducing the much-requested video playback format update: DivX and VC-1 (WMV) videos are now playable in the Video section of the XMB. This update also brings the PS3's Blu-ray drive up to Profile 1.1. "Picture in Picture" and other enhancements become available on Profile 1.1 compatible Blu-ray discs. A voice changer feature is added, enabling you to change the tone of your voice during voice or video chat. Sony also released PSP firmware v3.80. PSP owners will be able to access thousands of stations in a wide range of diverse genres with the addition of Internet Radio in firmware update 3.80.

Sony has inadvertently revealed that it is planning a new firmware update for the PS3 tomorrow after a page was accidently uploaded to Sony's UK website discussing the 2.10 update which "was released on December 18". The most interesting new features to be included with this update are support for DivX and Blu-ray Disk Profile 1.1, although copy protected DivX files and movies encoded using DivX 3.11 cannot be played. Other updates include the voice changer feature being added to voice/video chat and the option of a new music bitmapping process that has been developed specifically for the PS3 to enhance audio playback. Sony has since withdrawn the page, but you can still read all of the information by visiting the source link.

According to Sony Japan a new Play Station Portable (PSP) firmware 3.80 will be accessible for download on December 18th. Quick translation of the text leads to the following updates:

• You can now schedule 1Seg TV tuner to record your favorite show at a certain time (similar to Tivo). This feature will only work on the new slim (PSP-2000).
• PSP will now support streaming audio through the internet connection.
• PlayStation Spot is now also available at BB Mobile Point (only in Japan).
• You can now do a scene-search in video (search for beginning of each scene or clip). This is under the video feature.
• RSS will now support opml file. You can subscribe to multiple channels which is saved in opml file. And now, RSS will also support picture (photo).

It has been one year since all the next-generation (or now, current-generation) consoles have been available to consumers. At this point, it would seem as though the Xbox360 and Wii are neck-and-neck, temporary sales leads based on game releases. While Sony may be trailing along, they certainly aren't very far behind. Sony was planning for the long haul when they made the PS3. They've used this tactic several times before, and it's played out fine just about every time (PS2 sales are very high seven years after the console was originally released). Things for the PS3 are looking up, as price cuts have put the PS3 ahead of the Wii in Japan, sales-wise. When asked about current console sales, Sony Corporate Entertainment America president Jack Tretton has this to say:

The first year is important, but it's the first inning of a nine-inning baseball game. You're not going to win many baseball games if you panic when you're down 1-0 in the first inning.

Thanks to a price cut and Black Friday, the Sony PlayStation3 is finally doing quite well for itself. During week of the famous American spending-spree day known as "Black Friday", PlayStation3 sales increased by 245%, and the previously mentioned factors bumped up the PS3 sales to the total figures of 298%. During Black Friday, the rest of Sony's consoles got their own time in the spotlight: PSP sales increased 136%, and PS2 sales were up by 287%. Gamespot estimates that Sony sold nearly 321,000 PS3s on Black Friday alone. If these figures are accurate, November may be Sony's most successful month this year.

The PSP Extended Life Battery Kit will work on both the old and new PSP-1000 and PSP-2000 models. This 2200mAh battery will offer 20% more battery life on the older models, and 80% more life on the new slim line. This battery will bulge out slightly on the slimmer PSP systems, so new battery covers will be included. However, those with Star Wars Ceramic White systems are out of luck: doesn't appear a new battery cover is being made for that particular model. The peripheral will be available in mid-December for a MSRP of $44.99.

An investment company owned by Dubai's ruler, Sheikh Mohammed bin Rashid al-Maktoum, bought a stake in Sony Corp., in the latest sign of the growing appetite for overseas investments by Middle Eastern investors. Dubai International Capital said yesterday it made a "substantial" investment in Sony. Spokesmen for DIC, of the United Arab Emirates, and Sony declined to reveal the size of the deal. The stake is likely to be less than 5%. Any higher, and DIC would be required to make a public disclosure under Japanese securities law.

Sony Corp said today sales in Japan of the new PlayStation Portable PSP-2000 game gear reached 1 million units in the two months since its launch, hitting the 1 million mark at a quicker pace than the original model. The new version, which is about 19 percent thinner and 33 percent lighter than the original, reached the milestone in just two months after its September 20th release in Japan. The original PSP needed an additional two weeks for the same amount, Sony says in a press release here.

Despite some PlayStation3 success in Japan, the Nintendo Wii is selling extraordinarily strong all around the world. While Nintendo hasn't been able to keep up with Wii demand since the console was released, they continue to make insane amounts of profit. After selling 200,000 units in Australia in just 50 weeks, analysts in the country declared that the Wii is the fastest selling console to ever hit Australia. Even the Nintendo DS and PlayStation Portable, which both were met with extreme fanfare, took at least 55 weeks to reach the 200,000 mark in Australia. Sony refuses to let Nintendo take this title without a fight, as their PlayStation2 continues trucking along to its seventh birthday. Sony announced that they will continue to sell the PS2 throughout all of 2008, and possibly 2009. It is priced competitively, at $199AUD, for Christmas. Microsoft also is working hard to compete with Wii sales, by pricing the Xbox360 at the same price as the Wii ($399AUD). Time will tell if the Wii really is just a fad/gimmick, or if it really has something going for it.

When we found out that the PS3 was more popular than the Wii in Japan as far as sales went a couple weeks ago, most people scoffed. After all, Sony had just released the PS3 40GB, you can almost expect better sales. But it seems as though there's something more to it, as PS3 sales are strong for the second week in a row. Here are the overall Japanese sales figures for the week ending November 18th.

• DS Lite - 76,069
• PSP - 65,609
• PS3 - 39,178
• Wii - 36,230
• PS2 - 8,855
• Xbox 360 - 6,525
• GBA SP - 153
• GBM - 109
• GC - 38
• DS - 15

Sony Computer Entertainment America has just launched the PSP version of the online PlayStation Store, allowing PSP owners to download everything from full-fledged PSP games to demos and themes. PC users can access the online marketplace from store.playstation.com. Those with an account for the PS3's online store can use their existing login, and downloaded content is transferred to an attached PSP via the PlayStation Network Downloader program available on the site. Initial offerings include downloadable versions of SCE Studio Liverpool's already-released Wipeout Pure and Gangs of London, at $14.99 and $19.99 respectively, as well as the $9.99 PlayStation Store-exclusive Syphon Filter: Combat Ops multiplayer game and free demos of Slant Six's SOCOM: U.S. Navy SEALs Tactical Strike and Sony Bend's Syphon Filter: Logan's Shadow. SingleTrac's Twisted Metal 2 and Insomniac's Spyro the Dragon, both of which were released for the original PlayStation, are also available for $5.99, and represent the only two titles to appear in both the PSP and the PlayStation 3's online stores.

Sony has slashed the price of the PLAYSTATION 3 development kit by almost half, promising to further reduce costs as more studios adopt the console technology. The PLAYSTATION 3 Reference Tool will now be available for JPY 950,000 in Japan, USD 10,250 in North America and EUR 7500 in Europe. "As more and more new titles are developed for the PS3 format, SCEI will significantly reduce the price of the Reference Tool in order to contribute to the cost saving measures of the development community," said the company. The console giant has also begun to integrate new programming tools into the PS3 Software Development Kit from SN Systems, including ProDG, SN Distributed Build System, SN Linker and SN Compiler. As well as new tools, Sony has also added programming functions to the PS3 Debugging Station allowing it to be used alongside the Reference Tool, rather than being used as just a quality assurance system for games in development.

Sony Computer Entertainment America (SCEA) yesterday celebrated the first birthday of its PLAYSTATION 3 (PS3) computer entertainment system. Launched one year ago in North America, PS3 has revolutionized the industry with its Cell Broadband Engine and RSX technology which gives the system tremendous computational power; Blu-ray Disc capabilities which provides state-of-the art graphics and unrivaled storage capacity; and free access to PLAYSTATION Network where PS3 users can experience online gaming, connect with other PS3 users as well as download games, movies and other content from the PLAYSTATION Store. In its first year, more than 200 software titles have been released for PS3 and more than 60 million pieces of content have been downloaded from PLAYSTATION Network worldwide. SCEA recently introduced new PS3 hardware models and pricing and the company is already seeing strong sales momentum as a result - PS3 sales have increased by 192 percent at the top 10 retailers in North America.

Sony's introduction of the new, cheaper 40GB version of the PS3, along with a fall in the price of the 80GB version, has helped to give a huge boost to the console's sales, doubling the number sold in the week immediately after its release, and tripling sales the next. Prior to the release of the 40GB model, the PS3 was selling between 30,000 and 40,000 consoles per months. This figure rose to 75,000 in the first week, and 100,000 in the second week, with Sony's CEO Howard Stringer saying the following:

Obviously, we've taken so much heat over the year on PS3. Finally, the turning point has been passed.

He also commented that he feels the surge in PS3 sales is unrelated to Nintendo struggling to cope with demand for the Wii, commenting that it is 'fortuitous' that the Wii is running out of hardware.