Sony's Blu-ray won the battle of high-definition DVD formats, but its PlayStation 3 gaming console has been losing the war over networked home entertainment. That will change this summer, promised Kaz Hirai, president of Sony Computer Entertainment, during a Tokyo press conference announcing new PS3 services for the U.S. market.

Sony will roll out on-demand movies and TV shows for download via the PS3's broadband-enabled PlayStation Network. It will also launch Life With PlayStation, offering news headlines and weather information with a spinning-globe user interface reminiscent of Nintendo's Wii News.

Sony has lost more than US$3 billion on the PlayStation 3 since its launch, but additional networked services and cost-trimming will bring the PS3 business unit to profitability by March 2009, said Hirai. "Sony said the things they needed to say," Gartenberg remarked. "What Sony has found in this generation was a Microsoft that was much stronger than it had been the last time around. It came to market a year ahead (with the Xbox 360) and didn't squander that year. At the same time, it's facing a revitalized Nintendo, which was the last thing everybody was expecting. All of this is putting tremendous pressure on Sony."