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."