Sony has seen its biggest quarterly loss in four years after the release of its new PlayStation 3 console, with the company losing an overall figure of $563 million US, with the games division alone seeing a huge $1.9 billion loss. It's estimated that the company loses $240 on each PS3 console sold ($300 on the 'low-spec' model), and experts predict that this is likely to continue for the rest of the financial year. "In the game segment, there was a significant operating loss as a result of the sale of PS3 at strategic price points lower than its production cost during the introductory period," said the company. Sony isn't the only one making a loss with its consoles - Microsoft is also believed to be selling Xbox 360 consoles for a price lower than production costs, leading to the Zune and 360 losing £315 million between them.

Sony today unveiled a portable multimedia PC with Blu-ray Disc technology that packs power and entertainment into a compact package. The new VAIO FZ notebook comes in multiple configurations, including a premium and standard model. The premium version plays Blu-ray Disc high-definition content so you can enjoy movies in full 1080 HD resolution, as well as record, store and play back personal content on high-capacity 25-50GB Blu-ray disc media. The latest VAIO FZ notebook is also combined with 15.4-inch widescreen display featuring Sony's patented XBRITE-HiColor technology(on the premium model). The FZ premium model also has an HDMI connector, built-in 802.11n wireless LAN and pre-installed Windows Vista Home Premium operating system. The FZ standard model will start at about $1,400, while the FZ premium Blu-ray Disc model will go for around $2,000. The VAIO FZ series will be available online here. They will also be sold at Sony Style stores and select retailers starting in mid-May.

I think many readers will agree that The Inquirer sums up this story quite nicely with the title 'Sony finally goes mad'. At the God of War II launch showcase, Sony has managed to pile yet more controversy onto itself by inviting members of the press to reach inside a warm goat's carcass to eat offal (internal organs) from its stomach (although the offal itself was prepared beforehand). Not only did Sony arrange this grotesque 'sacrifice' for the event, but it then went on to publish it in the Official PlayStation Magazine. Guests were encouraged to compete to see who could eat the most offal, whilst other activities such as topless girls dipping grapes into guests' mouths, throwing knives at targets and pulling live snakes from pits were all on the agenda.

A spokesman for the International Fund for Animal Welfare said "We are always opposed to any senseless killing of an animal and this sounds like a gruesome death. We condemn Sony's actions. It is stupid and completely unjustified." The event was held last month in Athens, and Sony has now commented "It has come to our attention that at the God of War II launch showcase, an element of the event was of an unsuitable nature. We are conducting an internal inquiry into aspects of the event in order to learn from the occurrence and put into place measures to ensure that this does not happen again." The magazine has now been recalled and will not hit UK shelves, but anyone who is subscribed to it will already have been sent a copy. If you wish to see the picture, here is a link to the censored version (the original apparently had the goat's head hanging by a thread of tissue with blood dripping out) - it's still a bit gory so isn't suitable for the main page.

Sony Computer Entertainment today officially revealed the next-generation PlayStation Eye USB 2.0 PS3 camera scheduled for a summer release. The PlayStation Eye is an accessory for voice, video chat and online gaming on the PlayStation Network. Key features of the PlayStation Eye include a new camera capable of a frame rate of 120 frames per second at 320x240, or 60 frames per second at 640x480, even in low-light conditions. The PlayStation Eye features all-new four microphone array, incorporating multidirectional voice location tracking, enhanced echo cancelling and background noise suppression. Bundled with each PlayStation Eye will be the EyeCreate editing software, which allows users to save photos, video and audio clips to the PS3 hard disk drive.

The introduction of the PS3 as a Folding@Home client has now helped the project to reach an impressive 693 teraflops of processing power, with 390 coming from PS3 consoles alone (despite only accounting for 11.4% of active processors). This figure is a significant improvement on the 367 TFLOPS being contributed by Sony's new console last month - the continued support from everyone who participates in the project helps Stanford University research cures for diseases such as Alzheimer's, Mad Cow (BSE), CJD, ALS, Huntington's, Parkinson's disease, along with many Cancers and cancer-related syndromes. Anyone wishing to become involved in the project should take a look at techPowerUp!'s own F@H team which currently stands in 741st place out of 62360 teams contributing. It is completely free (other than electricity and internet costs) and will put your idle processing power to good use.

You'd think that after America and Europe get a price cut for the Sony PlayStation Portable, the rest of the world would be entitled to the same treatment. Unfortunately, this is not the case. The Sony market in Australia has no imminent plans of changing the PSP price. Sony claims that they are not changing the price now because they are currently investigating the Australian markets, to figure out exactly what the new price should be set to. Time will tell what's actually going to happen with Sony in Australia.

Following a $30 price cut for the PSP in the USA earlier this month, Sony has now officially reduced the price of the handheld across Europe. The price in the UK will be coming down from £149.99 to £129.99, with the rest of Europe having the price slashed from €199.99 to €169.99. This comes after months of Sony ruling out any price cuts, with the changes being effective from May 4th (a week on Friday). There have also been five new platinum titles launched for the console at £14.99 each - Ridge Racer 2, Tekken: Dark Resurrection, Killzone: Liberation, LocoRoco, and MotoGP. With the DS being sold for £99 in most retailers across the UK, this reduced price gap gives Sony a better chance of competing in the portable consoles' market.

It seems at Sony the left hand doesn't know what the right hand is doing. A few days ago Sony's President Ryoji Chubachi told the Financial Times his company is re-examining the pricing and volume distribution of it's gaming console. Today however, Sony released an official statement that says the price will not be cut.

PS3 prices and shipment plans for the future should be determined by market trends and competition. Sony currently doesn't have any specific plan to cut the PlayStation 3's price.

The goal to sell 6 million PS3 consoles until the end of March wasn't reached, analysts say there were only around 4 million sold. Kotaku still think the examination is not finished yet and they are likely to come up with a lower price in order to boost sales.

Sony has updated the firmware for its two most recent consoles, with a few improvements for each. The PS3 firmware has been updated to version 1.70, which will enable gamers to play PS1 software purchased from the PlayStation Store (previously only playable on the PSP) and will allow the use of the vibration function of accessories when playing PlayStation and PlayStation 2 titles (not PS3 games unfortunately, but a step forwards). The PlayStation Store still lists all classic titles as being for the PSP, but this may be changed when it's updated later this week. As for the PSP, the firmware has been updated to version 3.40, with the most noticeable changes being improved support for PlayStation Network titles and a changed method for managing certificates under [Game]. Apparently with the new firmware, gamers can share save data between both consoles allowing PS1 titles to be continued on the move and at home.

Sandisk and Sony are now partnering up to push their SxS standard. The new flash based cards will be made for Sony's upcoming XDCAM EX high-def camcorders. Both companies claim the cards will have a normal transfer rate of 800 megabits per second and will be able to burst to a maximum speed of 2.5Gb/sec. The new SxS standard will also be compatible with the ExpressCard industry standard, which means that it can be easily used in notebook computers with an ExpressCard slot. Sandisk and Sony say the SxS cards will be available later this year. No pricing has been announced.

The Sony PlayStation3, along with other Sony electronics, have seen a sharp sales increase. This surge in sales forced a re-calculation of Sony's expected profits. While Sony was expecting "only" 60 billion Yen, new calculations indicate that Sony could stand to make as much as 400 billion Yen ($3.4 billion USD, £1.7 billion) this year. If Sony really does make 400 billion Yen this year, they will more than make up for the little hole the PS3 made in Sony's profits (200 billion Yen). Sony's stock is now selling for 6,510 Yen in the Japanese stock market.

According to Sony's chief technical officer Masa Chatani, the PS3's idle power could soon be put to commercial use in a similar way to the Folding@Home project. Due to its enormous processing power, whilst the console is not in use it can be used to tackle the complex calculations behind the Folding@Home project which simulates protein folding, therefore allowing scientists to better understand many diseases such as Alzheimer's and Parkinson's, as well as a number of cancers. The PS3 has proved very successful in this area, accounting for 367 TFLOPS in the recent Folding@Home statistics. But now, Sony may be about to expand this project to new, more profitable areas. "This kind of computing model could be used in a commercial application...for example, a start-up or a pharmaceutical company that lacks a super-computer could utilise this kind of infrastructure. We are discussing various options with companies and exploring commercial applications," Chatani said. Such a deal could well see businesses either offering free products or subsidising the price of the PS3 in return for the use of PS3 owners' idle processing power, although Sony has not yet revealed which companies having discussions with.

With Toshiba developing the world's largest OLED display, Sony has now revealed that it is set to begin production of its first OLED TV later this year. At just 11" and 1024 x 600 pixels, the screen size and resolution don't seem too impressive, but this screen will have 8-bits of colour per channel as well as a amazing 1,000,000:1 contrast ratio - not mentioning that it's only 3mm thick. Obviously this means it won't be the ultimate home cinema screen, but it still looks promising for future OLED products once the technology moves forwards. Pricing and availability are still unclear, but this should hit the shelves sometime in 2007.

In response to earlier reports of the increasing market rarity of the 20GB PlayStation 3, Sony Computer Entertainment of America has officially confirmed that the less expensive variant of its console will no longer be offered in North America.

Due to the overwhelming demand for the 60GB model from both retailers and consumers, we have ceased offering the 20GB model here in North America

said Dave Karraker, senior director of corporate communications for SCEA. Sony has also indicated that the 20GB model, while discontinued, will still be supported by software and services, such as warranty.

Sony is now adding an SSD option to its featherweight VAIO G ultra-portable notebook. The latest Sony VAIO G uses a 32GB SSD drive instead of the traditional 40GB hard disk. The weight of the notebook drops from 1.97 pounds to 1.89 pounds. Battery life is also extended 30 minutes bringing average run time to 6.5 hours with the standard battery and 13 hours with the extended battery. The Sony VAIO G features a carbon fiber shell, 12.1" XGA screen an Intel 945GMS Express chipset and is available with Celeron M, and ULV Core Solo processors. Other features include 802.11a/b/g wireless, Bluetooth 2.0+EDR, PCMCIA slot, multi-card media reader and a fingerprint reader. When the Sony VAIO G was first announced in November for the Japanese market, prices ranged $1,800 USD to $2,100 USD. The SSD option will cost an additional $545 USD.

A new technology called Laser TV could soon be in stores competing against plasma and LCD televisions if California based company Novalux has its way with things. The new laser TVs is designed to be used for either front/rear projection and because it can be used in current rear-projection cabinets it should be cheaper to produce. Not only will it cost less than LCD and plasma, it also boasts double the colour range and uses three-quarters less power, which should attract those who are after the best image quality available. However, the downside of laser technology remains in the design of rear-projection TVs: because of the way they work, they have a much deeper profile than LCD or Plasma TVs, so they are not ideal for hanging on walls. Sony's prototype laser TV (shown below on the left) is estimated to have a depth of between 8" and 10", whilst even large LCD displays are under 5". Novalux already has four designs ready and is in discussions with numerous OEMs, with the company hoping to see the technology go on sale in 2008.

After impressive initial sales figures, it looks as though Sony's new console isn't quite such a hit in the UK as it first appeared it would be. Using data collected from 7000 UK retailers which account for 90% of the software market, Chart Track today announced that PS3 hardware sales fell by an enormous 82% compared to the first week, with sales of Resistance: Fall of Man and MotorStorm falling by over 60%. Unsurprisingly, SCEE is yet to comment on these disappointing figures. Meanwhile, the PS3 also seems to be struggling in Japan alongside Nintendo's new Wii. Since the PS3 and Wii were launched on November 11th and December 2nd respectively, the PS3 has notched 812,000 sales - only around half of the Wii's 1.95 million units, quite a significant gap considering the PS3 had a month's head start.

A Sony spokesperson confirmed to GamesInsdustry.biz that the price for Sony's PlayStation Portable Core package (includes a PSP, the battery and an AC adaptor) was cut to 169.99 US$. Last week the official retail price for the same bundle was 199.99 US$.
Asked for a similar European action the Sony Official said there is nothing like this planned yet.

Two weeks after Ray Maguire, the man in charge at Sony UK, told the world about a smaller and lighter PlayStation Portable he recently admitted Sony decided not to update its mobile gaming solution for now. In the interview with GamesIndustry.biz where Maquire spoke about Sony's recent change of mind he added they are instead focussing on the relationship between the PSP and the PS3. In general this interview, which is the second part already, is more related to the PlayStation 3. Maguire seems to be very talkative throughout the whole questioning - don't miss the first part if you are interested in the console market.

While Microsoft added the Xbox 360 Elite to its gaming console lineup whose best feature comes in form of the 120GB hard drive Sony's 60GB Playstation 3 Premium now looks quite 'old'. Kotaku now comes with a story regarding an updated Playstation 3 model. A PDF document was found earlier this month which states a 80GB Playstation 3 is planned. Kotaku adds that Ken Kutaragi, known as "The GodFather of the PlayStation", had a 250GB model in mind. Maybe the 80GB PS3 when introduced will serve as the Basic, the 250GB PS3 as the Premium model.

Sony's new PS3 has managed to become the second fastest selling console ever released in the UK, with only the PSP managing more sales. In its first three days, the console has managed to notch up 165,000 sales in the United Kingdom, with 20,000 units being sold in Australia. Despite beating the Wii and Xbox 360 with initial sales, it can't be forgotten that both of those consoles had supply shortages (in fact, the Wii still does) and managed to sell more or less all consoles that were shipped, whilst Sony has only managed to shift about three-quarters of the 220,000 PS3s finding their way onto UK shelves. Looks like Sony was right when it claimed European consumers wouldn't mind waiting for the console - either that or it would have had some amazing sales figures.

Along with the release of PlayStation 3 in Europe, gamers in Japan and North America updated their Sony monoliths to system software version 1.60. Along with the much needed background downloading, the update brings to the PS3 the ability to help find a cure for cancer with its Folding@home client.

According to the most recent Folding@home client statistics sorted by operating system, the PlayStation 3 leads all other platforms by a huge margin. The PS3 has 367 current TFLOPS, while the next closest is Windows with 151 TFLOPS and more than ten times more CPUs.

When it comes to pure performance though, the PS3's Cell Broadband Processor is still no match for ATI GPUs for protein folding. The GPUs on Folding@home sit at 41 current TFLOPS, which come from only 700 processors. If there were as many GPUs folding as there are PS3s on the network, it can be extrapolated that GPUs could reach 876 TFLOPS.

Below are the current stats:

Sony has been a little behind with the new generation of consoles - in the time between Sony releasing the PS2 and PS3, Microsoft has entered the console market with two Xboxes and Nintendo has begun to recover from the disappointment created by the GameCube. However, Sony has finally launched the PS3 in Europe and Australasia, kicking off the global console wars between the 'next-gen' machines. In London, any gamers who turned up to buy a PS3 at midnight found themselves getting a free taxi ride home - and a free 46" HD TV to compliment their new console (a move which is estimated to have cost Sony £250,000), whilst 50 gamers in Berlin got their hands on a free PS3 by throwing their Xbox 360s at a wall. However, Microsoft didn't want all of the glory to belong to Sony - the company managed to rub some gloss off Sony's launch events in both London and Paris. Sony fans waiting outside the Virgin Megastore in London's Oxford Street were given chairs by Microsoft with a website address written on them which led buyers to a site mocking Sony for being late, whilst in Paris Microsoft drove a boat covered in Xbox 360 logos up and down the Seine near to a Sony boat which was acting as a temporary PS3 store.

Despite intentions for a large number of stores to open their doors at midnight in order to begin selling Sony's new console to die-hard Playstation fans, this has been forced to change after local authorities feared that police won't be able to cope with the crowds. Because of this, the only shop in London set to open at midnight to sell the PS3 will be Virgin's Megastore on Oxford Street - not a single HMV store in London will be opening at midnight. Throughout the rest of the UK there are still plans for 50 stores to open their doors at midnight, but this number is gradually shrinking as other areas follow the example set by London. GAME is advising that customers who have pre-ordered a PS3 contact their local branch to check whether it will be open or not. The main problem that police fear is that young gamers may find themselves being mugged of their new £425 console.

Sony has published its list of Playstation and Playstation 2 titles that will work with the European version of the PS3, with 72% of PS2 games claimed to be working on the new console. The list should be available here, but unfortunately it is no longer working so Sony may be amending the list. The v1.6 firmware announced earlier today will allow 1,782 of the 2,451 PS2 games available in Europe run using emulation, although it is claimed that many will not work 100%. According to Sony, games such as Kingdom Hearts and Twisted Metal Black run with "noticeable issues" (which have not been published). Removing non-essential USB devices and avoiding 60Hz mode (NTSC) may help to solve some of these problems, as well as limiting the number of players on one console to seven. President of SCEE David Reeves said "We will be adding additional titles to this list in future firmware upgrades, but as we have made clear before, in the future our resources will be increasingly focused on developing new services and entertainment features exclusively for PS3, rather than on delivering PS2 backwards compatibility."Update: the link now appears to be working again