Sony should have a clearer picture of what the embattled company needs to do when it shows the world the PlayStation 3 at the E3 video game conference this week.

In a story form Variety, the success of the new console "is crucial for Sony's video game division." Sony's PlayStation 2 currently dominates the market beating Microsoft's Xbox and the Nintendo Gamecube.

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As this console is also a Blu-ray DVD player many in the industry see it as "the key driver for adoption of Sony's Blu-ray high-def DVD format." In fact, a lot of studios have gone with the Blu-ray format, and not HD DVD, simply because they see the PlayStation 3 as the machine that could bring Blu-ray to the most people.

Disney, Fox, Paramount, Warner Bros. and MGM are all behind to the format, and some of those companies even support HD-DVD as well. Sony not only makes money on the players, it makes money on every Blu-ray disc that is sold.

Sony sees the unit becoming "the center of consumers' digital homes" mainly because of its built-in broadband Internet connection.

In addition to this, the company is looking to bring out "an online gaming service similar to Microsoft's Xbox Live that lets players compete through the Internet."

Evan Jacobs at Movieweb
Evan Jacobs