Money Matters - Simplified

Sony PSP to Revolutionize "Entertainment on the Go"

Sony Computer Entertainment aims to broaden its appeal to a more "mature" gaming audience as the PSP is being promoted as more than just a games machine -- it plays full-length movies, songs and videos, and can be used to view images as well apart from being the gaming console it is supposed to be.

The PSP is targeted at the 18 to 35 year old"entertainment enthusiasts". These are people who are watching or listening to media in every spare living moment of their life and don't go by other's suggestions as to what they should be listening to or not.

Priced at 180 pounds, Sony hopes its launch will break Nintendo's near monopoly on handheld gaming and encourage adults to play video games on the go. Unlike previous game consoles, such as the PlayStation, the PSP will not be a loss leader for Sony. The PSP has been a phenomenal success selling 5.5 million in Japan and almost two million units in North America, where it was launched in March.

In the past, the company has sold consoles at less than cost price, knowing that it could recoup money from the strictly-licensed games made by third-party companies. But in order to make its new format for games and films called UMD popular, it has loosened its controls over the format and put up the price of the player. According to the firm, the key to the PSP's success is the UMD, a disc format that is so far exclusive to this device.

Furthermore, Sony is adding Internet access to its Play Station Portable in a bid to increase the mobile gaming device's appeal as a handheld entertainment center. Sony Computer Entertainment America is offering PSP users a software upgrade that will allow wireless Internet access on the device, including a new Web browser to connect to news, entertainment content, online searches and e-mail.

The software is also built to increase data security on the device and enhance digital photo-sharing and video playback capabilities, the company said.

Sony Computer Entertainment Europe (SCEE) deliberately held back the launch of its latest device, the Sony PlayStation Portable (PSP) to avoid shortages With production for what is technically known as the PAL territories (including Europe and some southern hemisphere countries like Australia and New Zealand) starting at the end of June, SCEE is expecting a sales binge for the first few weeks after the launch on Thursday, followed by a lull in October, before the customary Christmas rush.

Apart from a number of games that are lined up for the launch, appealing to different audiences, SCEE is promising some 20 film releases on UMD including Spiderman 2 and Ghostbusters - 50 by Christmas - and some 80-100 video music titles a month.

Future software for the PSP includes a conversion kit to turn it into a satellite navigation device, and TalkMan - a Star Trek-style voice recognition program that translates a phrase into another language and says it out loud.

But there's one group that probably won't be buying the new PSP in huge numbers when it's launched on Sept 1 in Europe and Australia. Sony has admitted that, despite its best efforts, it is struggling to get women interested in games machines.

While some female-friendly games have been launched over the last few years, the market is still dominated by men. The "holy trinity" of video games - shooting, driving and sports - tends to leave them cold.

Psychologists have shown that there are some pretty fundamental differences in the way that male and female brains tend to be wired. It's possible that this could partly explain why men seem to prefer computer games more. Games are very competitive, often aggressive and usually very goal orientated. They are about ticking off achievements. That could appeal more to men than women.

But whatever the speculations might be, PSP is set to be a revenue earner for Sony Computer Entertainment.